Yes bank

@Rax
Hi thankyou for your kind words.

1. So total 630cr share are going to be issued( it might not be precise as I am not referring the bank report). We will have immediate dilution of 330cr by next quarter and balance by next year. Both instructional investor will get 10% each.

2. The probability of SBI selling in FY23 is extremely low and as far as others investors are concerned I have given a post above where I have tried to quantify the fall.

3. I was expecting 2300cr this year so I turned out to be horribly wrong in my estimates. This year in a good case scenario they might hit 1500cr only. My estimates had a big assumption of ARC sale by June 2022 that is one of the major reason for such big deviation.

Seeing their current performance and industry tail wind I am extremely confident of they hitting 1.5% ROA by FY25 currently they are generating 1% on their active book and an asset size of 4lakh cr ( this means a 8% growth for the next 2.5yrs which I again feel is conservative). So I see this stock trading between 35 to 50.

4. I don’t see this happening at least for the next 3yrs.

If I had to give you advice I would say since your average price is 27 your probability of making money out of this is low. You should be selling a good amount of your holding at 20 or 18 and invest in a good company.

@Aarti maam
I think money can be made out of any stock. When yes bank was at 18 I was at 40% profit in 1 year on 80% of my portfolio(currently it is 60%). I am 90% confident that even in the worst case scenario I will make 20% CAGR form my avg price for next 3yrs.

If you could share why do you see yesbank not performing I would be glad. Just by assuming that it destroyed investor wealth earlier and will do the same in future is not the right way according to me.

We can see 2 world class instructions buying stake here and FII stake increasing from last 5 quarter so you will have to elaborate your point on institution investor.

Thankyou