DCB Bank ,Federal Bank and RBL bank are now in different league and smaller version of top pvt banks

There have been three parts in pvt banking as far as stock market is concerned .Pvt retail focused,pvt corporate focused banks and small old generation pvt banks .DCB Bank and Federal Bank were considered as part of old pvt generation bank.Now after recent good operational performance and raising of funds at peak of market has given them sufficient ammunition to fuel growth and improvement in book value.RBL had also come out IPO at good price.So in my view now RBL bank ,DCB Bank ,Federal Bank has upgraded from old pvt generation bank club to league( although smaller version) of HDFC bank ,Kotak bank,yes bank and Indu sind bank.I expect these small banks to repeat glorious historical performance of big pvt retail banks.As these stock had good run up in recent past so some consolidation is expected before resumption of journey.Any correction is buying opportunity for me.Thread is just for discussion and no buying recommendation.I hold these stocks.

 

We'll all I can say is that these bank's will keep chugging along having a share in the overall (increasing banking wallet). But none are likely to become or be in the same league as the likes of HDFC, Kotak etc

The top Pvt names had the early movers advantage, always had first class ,visionary management teams. The transformation that bank's like RBL, DCB, Federal have embarked upon whilst will yield results compared to their respective historical positions, but it won't really result in catching up with Tier 1 names. Ofcourse any of the Top Tier names could easily derail - like ICICI

 

But Sir I m positive about ICICI Bank in long tern orientation.

 

Yes, I had also further increased weight of ICICI bank in my portfolio in running quarter.L& T and ICICI bank are top picks for Indian cyclical recovery play for next few years .

 

Just because ICICI got derailed doesn't mean it's stripped out of its competencies and/or strengths. In the long run its these which matter.

Precisely the reason why I have been buying into Suzlon and Jain Irrigation over the last 2-3quarters. Am hoping to make some solid returns from both these.

There are a very few shares I buy or hold with 2-3 years perspective and whatever I hold are reviewed every 6 months. For me ICICI at the moment is a scrip which is not out of the woods and so remains a trading name each quarter for unlike Suzlon or Jain which can give upwards of 40% return in 12 months, ICICI may not.

 

Sir,I form my view on the basis of what I see on long term horizon in the short term oriented market. My horizon is much longer. But ,since market's eye is on the future potential,I expect secular improvement in the price.I request to be forgiven for holding different opinion,but that is how stock market works and I agree I could be wrong.

 

RBL bank profit up 45% ,DCB bank profit up 38% and Fedral bank profit 26% up clearly shows that these small pvt banks are in different league (smaller versions of top pvt banks)as compare to very low profit ( in range of 7 to 10% up)shown by other smaller pvt banks like Karnatka bank,SI bank and Laxmi villas bank etc.So DCB bank ,RBL bank and Fedral bank remains top picks for me in small pvt banking .