Banking Sector

Hi Shabbir and All,

In media from past two weeks every one is saying this is the right time to invest in private sector banks and they are also saying India's growth is very weak.

Please let me know your views on private sector banks

Thanks,
Naidu.

 

Hi Siva & Shabbir,

One observation I had - when country's GDP was around 8.5-9% then, some of these private sector banks namely, HDFC, ICICI, etc were coming out with good results in the range of 30% PAT up for both.
Now when India's GDP is around 5-5.5%, even then HDFC, ICICI have managed to publish good numbers, 30% PAT up for HDFC this time i think and more or less same for ICICI. Infact, for these 2, it has become a joke to come out with 30% PAT up everytime qrtly nos. come out. And HDFC bank always comes out with exactly 30% PAT up each time, not even 5% more or less.
To sum it up, both these names have consistently showed up good nos, even when India's GDP has gone down/is going down. Their results beat the GDP in general, which is quite phenomenal. Even when most organizations/companies are coming out with poor nos., these 2 have been the opposite and kept results upbeat. Both are large orgz. & keeping nos. consistent at 30% is a good job done. Even Axis come close with PAT in the range 20-22% each time.

OR it can happen that their results are manipulated - i mean when a satyam can happen, anything can happen.. but chances may be are very less.
Plz share your views also...

 

Hi Shabbir and Sachin,

Thank you very much, because of your prompt responce to my thread I escaped by media trap.
If i did not post this thread i could have lost some big amount because i about to buy private bank stocks.
This is a good lesson for me and other investors who follws the media blindly.

Thanks,
Naidu.

 

Thanks for points above you mentioned on HDFC bank.

I second this thought also Shabbir da, on extending this forum for financial planning sections as well.

 

Great thought Shabbir about financial planning section.

I think every portfolio manager change their portfolios based on the quarterly results. so we also define the portfolios for every quarter and examine thorughly.

Now a days very huge voltality is there in markets. Instead of invest the huge amount in one sector/stock, distribute the amount in multiple sectors/stocks which are technically and fundamental good.

If we keep on discussion about the portfolio's every week we can understand about the market well and stay long in equity markets.

Please correct me if i am wrong.

Thanks,
Naidu.