Thread by @MarketLearner_

The privatization of IDBI bank.

Is it necessary?
Is it worth?
Any options?

Answered in this #Thread 🧵

#StockMarket #Stocks #StockMarkets #IDBIBank

@KommawarSwapnil @kuttrapali26 @harrie007 @caniravkaria @kaushaldarshan_ @TheFactFindr @Ishan_Narayan_ @mystock_myview

(1/7)

Before reading, kindly join our telegram where we post lots of information along with great technical charts everyday!

Use the link below👇
telegram.me/TheMarketLearn…

Content :-

👉About the privatization.
👉Why is it required?
👉Will it help India grow?
👉What is the best way?

First, lets try to know about the privatization💰💰

👉Government recently proposed to privatize IDBI Bank.

👉Government & LIC collectively hold 94% stake in the bank & both will be selling a little more than 30% each.

(2/7)

Now, lets try to understand why is that even required? 🤷‍♂️🤷‍♂️

👉When India nationalized banks in 1969, they wanted all banks within the folds of the government but they have failed to produced another SBI.

👉To keep these banks afloat, the government has to constantly pump money rescue them.

(3/7)

👉The return of assets in these banks are also very poor.

👉So, instead of just blindly pumping in money with no certain benefits, its way better to privatize them.

(4/7)

Now, lets see if it would help India grow or not? 📈📈

👉India needs large banks if it has to accelerate journey towards becoming $5 trillion economy by FY30 & a $10 trillion a few year later of that.

👉Currently, few banks besides SBI provide credit to corporates to grow faster. Hence, we need this for our economy.

(5/7)

Now, lets have a look at the best way possible for privatization🛣️🛣️

👉One interesting way would be to not hunting for strategic buyers but consider selling the bank's entire stake in public.

👉Most successful banks in India, HDFC, ICICI & Axis do not have any owners. They are run by professionals with a self sustaining growth plan.

(6/7)

👉If government were to sell its stake in some large PSUs & put through professionals in place, the banks would grow faster & scale up sufficiently to match private sector banks.

👉Even a dying Yes bank was brought onto the path by professionals of SBI.

(7/7)

I hope my thread helped you in knowing TCS results better than before. Please don't forget to join our telegram channel its absolutely FREE & we are doing a lot of hard work here. telegram.me/TheMarketLearn…

Thanks for reading,
The Market Learner.