My entire bet on SIB is on the jockey and his conservative approach to lending. This all is coupled with the npa cycle which has recently bottomed out. Market perception is still not rewarding the shareholders here which is why this bet might give asymmetrical pay off in the medium term. The current pause is cause of sudden rise of interest rates which affect lending as well nims. I am expecting this to cool off given fed might pivot soon and due to recent commodity sell off the inflation might be tamed for good. Given the old book is still sizeabloe and affects the performance of the bank. I am wishing for a scenario where the old lending book drag reduces, new lending book and growth propels the bottom line and the jockey keeps the npa under control. This might sooner or later lead to sizeable rerating.
disc: holding and added recently
| Subscribe To Our Free Newsletter |
