Govt going to sink 2 Lakh Crore in Black Hole (PSU banking), stay with pvt Financial Stocks.

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by kharb, Oct 25, 2017.

  1. kharb

    kharb Well-Known Member

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    Govt has decided to sink 2 Lakh Crore in Black Hole (PSU banks), this will give a trading bounce to PSU banking stocks as they are under owned and underpriced. This will not prove more than paying for ventilatter for dyeing patient in a pvt hospital. This PSU banking Recapitalisation is just a FINANCIAL JUGAD . So I shall stay with pvt Financial Stocks for long term. NO doubt this 2 Lakh Crore will give some time for PSU banks to burn like online marketing players to remain afloat and will deaccelrate fast losing market share to pvt sector. This all is on expected lines as Govt can not allow PSU banking to shrink so fast and it is also good for economy temporarily. Major beneficiary of this will be PSU bank employees, inefficient Enterpenures who were not getting credit and employees of them, permanent defaulters from agricultural sector who never pay in hope of loan waiver . This will save some jobs for some time, which Govt needs desperately and this may also help general economy for some time till economy recovers from Demonetisation and GST blow. This may also help in non discretionary consumer products due to reduction in job losses. This will also help pvt financial sector to remain competitive to grab market share slowly in long term. This is just my personal view for discussion and in no way recommending any buying or selling of stock.
     
    Last edited: Oct 26, 2017
  2. kharb

    kharb Well-Known Member

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    PNB Fraud more than 1.77 Billion USD has surfaced. Earlier also PNB has been looted by Winsome Diamonds. It seems some fraud Daimond traders has found A Sitting Duck in PNB and may be some more PSU banks.Most painful is One Modi collect Taxes (latest being LTCG tax and Increased cess on income tax) through our Nose and another Modi siphoning off tax payers money . What tax payers public have got is just glimpse of A Photo Session at Davos with both Modi dressed at the best and news of another Modi disapearing right in front of Govt nose(other Modi has been Lalit Modi ex CEO IPL Cricket ). I am not an expert (so never recommend to buy or sell any stock) but really unable to under stand What invisible fundamental some Investers see in PSU banks(inspite of Sbi recent Npa heavy results) when they invest , when top grade pvt financial stocks are there. Will any PSU banking stocks Fan elaborate. With LIC busy in bailing out PSU banks in name of investment, Pvt insurance along with Pvt Banks looks good to me for long term . To me Bad news for PSU banks and LIC is looks positive for pvt banking and pvt insurance. Value Migration Will Continue to pvt sector in financial sector in my view What is members views on this development. Only for discussion.
     
    Last edited: Feb 19, 2018 at 11:39 AM
    Kritesh Abhishek likes this.
  3. Ashish Datta

    Ashish Datta New Member

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    More money in PSU banks means more NPAs..... Not many months ago there was a lot of hullagulla around Yes bank not being ethical with their NPAs....hiding information and all that.....the truth is that no bank is clean.....HDFC,Yes, Kotak all banks hide information .....but they will always hire the best talent available and will be more aggressive than PSU banks.....I strongly believe we should stay away from PSU banks and invest in leading pvt banks....Also financial companies like L&T Finance, Indiabulls HFG, Edelweiss, Piramal Enterprises, DHFL are good companies to be invested in from a 3-5 yr perspective.
     
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