morning thoughts...
The markets traded and behaved in exactly the same pattern illustrated.
Technically the coming session is likely to stay remain volatile with two side movements.
Public sector banks (PSBs) are already lagging behind their private sector counterparts in terms of business growth and asset quality. As if this was not enough, they will now have to brace for higher competition. Of the two new private banks that have been granted license, Bandhan Bank recently started operations whereas IDFC Bank will be launched in October 2015. Apart from this, eleven payment banks have been approved by RBI and are expected to begin operations in around 1-2 years time frame. As these payment banks have been licensed to accept small deposits of upto Rs 1 lakh and provide payments and remittance services, PSBs will be hit on two fronts. Firstly payment banks are likely to pull away the low cost saving bank depositor base of PSBs thereby minimizing its competitive pricing in loans. Secondly, even the fee income of PSBs are expected to be hit as payment banks offer modern payment channels using mobile telephony.
Therefore PSBs that presently command more than 70% share in deposits and advances cannot afford to remain complacent on key issues that plague it. Amongst them lack of autonomy and lower efficiency due to industry wide wage pacts are major roadblocks responsible for deterioration in its financials. So if PSBs have to benefit from a pick-up in retail credit fostered by the entry of new players, they will have to gear up to clean up their balance sheets and become more efficient to meet the new challenges.
Yesterday's calls sent
Nifty - buy at cmp 7765 sl 7747 targets 7850 - holding
Bank nifty - buy at cmp 16475 sl 14390 targets 16700 - holding
Dlf - buy at cmp 105 sl 103.50 targets 110 - holding
Indusind bank - sell at cmp 838 sl 847 targets 815 - holding
Reliance capital 320 ca - buy at cmp 8 sl 6.50 targets 14 - holding
Lupin 1900 ca - buy at cmp 60 sl 53 targets 85 - holding
The markets traded and behaved in exactly the same pattern illustrated.
Technically the coming session is likely to stay remain volatile with two side movements.
Public sector banks (PSBs) are already lagging behind their private sector counterparts in terms of business growth and asset quality. As if this was not enough, they will now have to brace for higher competition. Of the two new private banks that have been granted license, Bandhan Bank recently started operations whereas IDFC Bank will be launched in October 2015. Apart from this, eleven payment banks have been approved by RBI and are expected to begin operations in around 1-2 years time frame. As these payment banks have been licensed to accept small deposits of upto Rs 1 lakh and provide payments and remittance services, PSBs will be hit on two fronts. Firstly payment banks are likely to pull away the low cost saving bank depositor base of PSBs thereby minimizing its competitive pricing in loans. Secondly, even the fee income of PSBs are expected to be hit as payment banks offer modern payment channels using mobile telephony.
Therefore PSBs that presently command more than 70% share in deposits and advances cannot afford to remain complacent on key issues that plague it. Amongst them lack of autonomy and lower efficiency due to industry wide wage pacts are major roadblocks responsible for deterioration in its financials. So if PSBs have to benefit from a pick-up in retail credit fostered by the entry of new players, they will have to gear up to clean up their balance sheets and become more efficient to meet the new challenges.
Yesterday's calls sent
Nifty - buy at cmp 7765 sl 7747 targets 7850 - holding
Bank nifty - buy at cmp 16475 sl 14390 targets 16700 - holding
Dlf - buy at cmp 105 sl 103.50 targets 110 - holding
Indusind bank - sell at cmp 838 sl 847 targets 815 - holding
Reliance capital 320 ca - buy at cmp 8 sl 6.50 targets 14 - holding
Lupin 1900 ca - buy at cmp 60 sl 53 targets 85 - holding
