Noob question. Purely from investing perspective, why would upgrading SFB to a full fledged bank make SFB a more attractive investment. I guess it’s a special situation of sorts but what kind?
Sure bank gets access to launch diverse products and services, but the underlying business is still lending. And the asset quality will not change, or diversification will not happen overnight. It would be a gradual process that may actually need more investment. Risk profile is not guaranteed to reduce just because of a universal tag.
What am I missing?
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