HI @TradingWithMind,
I sold SIB as a tactical call post Q4 results. I believed the market overreacted on the news of Mr. Murali not continuing and hammered an already very cheap stock going through a credit upcycle and positive changes in underwriting after the announcement. So I waited for the Q4 results and the stock to recover before selling.
I am selling for a couple of tactical reasons:
- I see better return opportunities in pockets of the financial space right now
- I would like to see who the Board appoints as Mr. Murali’s replacement. Murali Ramakrishna has set the bank on a very strong path in terms of all metrics. Hopefully Board appoints somebody who will take this story forward equally responsibly.
From Q4 concall POV, good to see them finally opening some branches. Their CASA deposit growth has been abysmal and I think they will might face NIM stagnation/decrease issues in FY24 if they aren’t able to source cheaper liabilities. Good to see them talk about a data analytics change. There’s a lot to like in the bank’s story at the moment.
Disc: May jump back in if I feel Board is making good decisions as mentioned above.
| Subscribe To Our Free Newsletter |
