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A SEBI registered investment advisory firm that follows the principles of value investing to achieve long term wealth creation.

Dec 11, 2021, 7 tweets

Banking Sector!

A Thread.

#Banks #PublicBanks #PrivateBanks


Performance of Bank credit in last decade. Affected due to slowdown in industrial credit towards the second half of the decade.
#Bank #Credit #GDP


A triple blow!

1. A commercial credit downcycle due to capital downcycle.


2. Emergence of alternative credit sources for companies.


3. Increased Risk aversion among bankers with the existing legal issues.

With the changing environment with respect to capital cycle and legal framework, can we expect industrial credit to improve?


PSU banks have industry credit as a major share in their books. With industry credit improving, are the PSU banks capable of maintaining their market share in the industry credit?

SBI is already showing an improving performance over time.


How does the valuations of banks look like?
#Bank #Valuations


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