Hi Divyansh, Personally I am little sceptical about lending business as its cost of capital is tool high and things can change all of a sudden. SIB is cheap for a reason. The bank is highly dependent on NRI remittance mainly from middle east. currently it is in declining mode. Now the bank is more focusing on retail loans which will help the bank to control the NPA short term but the margins will be significantly affected in longer term.
I entered in this bank when it was very cheap( mine average : Rs.5.5 ), considered as low risk. now my target is almost achieved. planning to exit.
I don’t see any fundamental change in the bank expect, the general narrative that the indian banks are in better position than US and European ones. I think mainly its based on NPA cycle. it can change any time (not more than 2 to 3 years)
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