Do we know why the OPM% has been decreasing since June 2019.

Has the product mix that is sold changing which could impact the margins or is it to do with increase in RM?

@Caution_Investor
Hi actually you asked ishu this question but I would like to put my view as well.

I feel in the next 5 or 8yrs most probably ICICI will overtake hdfc bank in market cap terms and become the largest bank in India. Below are the reasons why I think so,

1. I have a view that banks which will have more granular advances and more towards retail and MSME will outperform banks who are more towards wholesale. If you see ICICI in last 2 to 3yrs have slowly moved towards retail segment and has been consistently outperforming HDFC bank from last 6 to 10 quarters. Why is HDFC not changing its MIX then?. HDFC is the leader in the wholesale segment and it is extremally difficult for a bank of HDFC size to change its entire MIX. ICICI took 3 yrs and a recent example is yes bank which took 2.5yrs.

2. One of the major reason for bank to get better valuation than competitors is PROMOTER. because of UDAY KOTAK kotak bank gets primum valuation. HDFC was getting this because of ADITYA PURI who left the bank.

3. Technological advancement is bound to happen in banking over the years. I feel ICICI is ahead of HDFC in terms of technology as well. ICICI is also more innovative and has a better product offering than HDFC bank. Banks who focus more towards retail customers will outperform and ICICI is exactly doing that. Like if you see ICICI mobile banking app is better than HDFC ( you can verify this by their rating in play store or experience yourself), ICICI investment related products are better than HDFC ( ICICI direct),

You can clearly see ICICI last 2yrs stock performance also beats HDFC bank

One last point I would like to add. A bank more towards wholesale is likely to have better financing margins and a bank more towards retail is likely to have better cross selling. If the economy is going to grow and per capta grows then the bank with more retails will have a significant gain in cross selling resulting into more profits.

Not studied PB fintech. What i heard is recently they have become insurance broker. Earlier they were just aggregators. But dont know much about business model. But since the product insurance is Push product. They wont get much business. Those clients who want to purchase term insurance may go.to.them, but thats not a sustainable.business. What i have seen is, generally people take term.insurance online by listeing to some so-called expert but since they have not been convinced about the utility of the product, generally in 3 to 5 years they lapse the term insurance. So life of that business is not sustainable. But business through agent has more durability, as he reminds them.for renewals as he has commission interest in renewing it. There are many isuues for online purchase of term insurance at all the 3 stages…Before purchase, while purchasing, and after sales service. Many times , online guys do not make clients aware of moral hazards and implications of mentioning wrong answers or half truths and how it will affect their claims. They , themselves dont know much.

Amazing stock selection sir. i am a newbie investor and would love to have you review my portfolio.
This the link to my portfolio.

Your Stock selection is impeccable but I don’t understand the reason for having 70% Investment is divided income stocks whose capital appreciation is very limited. Is the plan to invest the dividends into your SIP portfolio? Or some other conservative approach?

Also you mentioned your overall portfolio returns are just -4.5%, better than the Nifty returns but that can be because of the high weightage to Invits and REITs and dividend stocks. If you find the average return of your equity investments, then you might get a clearer picture of your portfolio.

Is this allocation deliberate in order to protect capital?