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Vinit Bolinjkar
6,336 followers -
Founder Academic Toppers (http://academictoppers.com) and Winning Trades (http://winningtrades1.com) Stock market, Gold, Silver and crude oil enthusiast who loves blogging, social media marketing, astrology, music and technology
Founder Academic Toppers (http://academictoppers.com) and Winning Trades (http://winningtrades1.com) Stock market, Gold, Silver and crude oil enthusiast who loves blogging, social media marketing, astrology, music and technology

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South Indian Bank is interestingly poised near its all time highs. If you are a novice and want to understand how to trade such setups you can leave us a comment and we will enroll you in our free webinar series
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Hi can anyone suggest a webinar SW which will help me share my screen and also have a picture in picture of me talking

In August 2015, I had done a report on private banks gaining at the cost of PSU Banks. Well we got the trend right. But the worst of fears cMe true when the Pvt banks did extremely well and the PSU banks got decimated.

With PSU banks of their historic lows, we recently met with two PsU banks to see if there could be Game changing moment. And the sad realization was that nothing has changed.

The essential understanding of this exercise, albeit with a very small sample, is summarized below.

The Banks lack leadership to take them out of this imbroglio. They absolutely don't have a competitive edge, lack imagination and dont understand digital at all.

Digital as to the PSU banks is taking all transactions online - as simple as that. Digital strategy starts where their thinking ends and this to my mind is the single most self destructive aspect.

Herd mentality - all want to do retail. Period. Nobody wants to tread a path which is thought out. As it is they are on the line. So what do they have to lose if they take a bold approach. Hiring banking professionals, paying them well linked to performance and providing then rewards through sweat activity could be some well tested strategies that could be implemented.

The NPA mess is worse than we think it is. In fact the realization was that the mess is far from being recovered. This is definitely going to undermine their growth as capital is scarce. Govt too has today indicated that there is a limit to how much capital that it is willing to put in.

It is a different thing that govt will not risk a systemic risk and reluctantly find these entities. But that money coming in maybe way too late.

This imbroglio has led to cost to income ratio shooting up from lows of 30ish % to high 50s. And with a unionised labour force that is fat incompetent and aging it seems unlikely that efficiencies would kick in anytime soon.

While the argument of a economic revival would come to their rescue (like a farmer hoping that the rain gods would smile) is in my opinion a hopeless hope. Value investors would find their own arguments to wager a bet on their revival.
But when you have a growing market, and other opportunities within the private sector space viz NBFCs, PVT banks and the new age fintechs who are here to change the landscape, why stay with these losers.

Paying a little more in terms of valuatuon, which compensates for a fast growth ride with best in class efficient players who have demonstrated ability to grow in a globally challenging environment is a commonsense investment strategy.

My money is with the private banks.

Disclaimer: these are my own rants and do not echo the views of my employer. Also please do your own diligence while picking stocks. Stock markets investing carries with itself it's own risk and consult a financial advisor for the health of your portfolio. This is not an advise to buy or sell any stock and in case you have based your decisions on this post I would not be responsible for losses incurred by you for actions taken.

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Ventura India Strategy | Where markets are headed

IF you missed the live Hangout on Air, heres the re-run

#indiastrategy   #indianstocks   #venturaresearch  

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With markets on fire but economic indicators still not following through, questions arise as to whether the rally is sustainable? While the markets have rallied stocks have moved even further and there is consternation in the minds of investors if this is the right time to buy.? For those committed to the markets its also about picking up the right sectors / stocks to participate in.

In this presentation, through data and rational analysis, we bring to you our view on where we think markets are headed and which sectors are expected to do well.

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With markets on fire but economic indicators still not following through, questions arise as to whether the rally is sustainable? While the markets have rallied stocks have moved even further and there is consternation in the minds of investors if this is the right time to buy.? For those committed to the markets its also about picking up the right sectors / stocks to participate in.

In this presentation, through data and rational analysis, we bring to you our view on where we think markets are headed and which sectors are expected to do well.
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