Hi @ayushmit bhai. Following are some reasons in brief on why I had invested.
- Balance sheet strong
- CAR great
- Over conservative (PCR)
- Very low NPA (will remain the same since most of loans are gold loan)
- High NIM (Same reason. They could get high growth in GL coz they charge very less (negative for me) GL Yields of CSB is equal to NIM of GL NBFC)
- Very strong management team and board
- Expecting some event soon. Prob with IDBI. Connecting dots here. Prem Watsa selling assets and raising funds to bid for the bank and chairperson of CSB is ex-IDBI.
- any price rise in gold will act as kicker for loan growth
- Also fares well in recession times. Since Recessionary period will lift price of gold and that will jump GL.
- on negative aspects, banking is such an industry where leader has inherent moat of low cost deposits. And thereby could attract best quality loans at cheap rates yet maintaining quality and margin. Small banks will face such issues. However they have good sticky deposits.
I had written a thread on this and update it periodically. You could find it over here
https://twitter.com/FalakKalyani/status/1390864743066312706?s=19
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