While their growth and margins are comparable to the private and foreign owned banks in India,the P/E multiple is much lower despite lower risks.The cause of this discount become apparent when you consider some of the loans these banks make.LIC had come under a cloud in nineties for making investments and loans to favored companies
India’s Rising Inflation crosses into Double Digit territory India has seen inflation increase at a rapid pace in the recent months with the Wholesale Price Infalation (WPI) crossing into the double digits in the most recent reading.While Food Inflation in India has been on the higher side for the last 6 months due to insufficient […]
Exchange Traded Funds or ETFs have revolutionized the Investment Industry in recent times due to their simplicity,low costs and ease of use.The US Market has seen a massive growth in the usage of this Financial Instrument with a mind boggling variety of ETFs catering to almost every asset class ranging from equities,bonds,currencies,commodities and even derivatives.The […]
Introduction India’s Central Bank RBI is proposing to free up the Savings Deposit Rate which is currently fixed at 3.5% . All banks whether they be private or public, have to offer 3.5% to savings account customers.This is the only rate which is administered by the Central Bank,fixed deposit rates and lending rates are decided […]
Standard Chartered IDR closed below its listing price of Rs 104 in the Indian Market.A Review of Standard Chartered IDR had revealed severe disadvantages for retail investors.In Seven Reasons Why StanChart IDR was not a good buy, I had listed out the shortcomings of the IDR instrument and Standard Chartered as a stock.It seems that […]
The detente between the Ambani brothers which lead to the rescinding of the non-compete agreement has resulted in Reliance Industries Ltd (RIL) being the biggest Winner in the win-win arrangement.While on one hand Anil Ambani’s Reliance Communication which was facing a liquidity problem has benefited by being free to sell a stake in the company,Mukesh […]