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General Trading Chat
The quantum of the Nirav Modi-Mehul Choksi (Gitanjali Gems) swindle increases every few days, it is rattling several skeletons in the cupboards of banking and capital market regulators. On 6th March, the Republic TV conducted a high-pitched debate about how the Reserve Bank of India (RBI), under its most high-profile governor, Raghuram Rajan, allegedly favoured the former finance minister by manipulating the 20:80 gold import scheme on 21st May 2014, just five days before the United Progressive Alliance (UPA) demitted office.


----- Full-Time ----- Day-Trader
From my above chart 10300-345 is prev sup- hence res zone. If nifty able to clear that then there is free hollow space till 100 ma. Lets see the price action.
Did anyone note? nifty faced resistance on exactly 100ma today and it did move faster inside the above mentioned hollow space in last 2 days. Trading is simple when we read sup res carefully.. We just need to do our homework every day...:)
Any view on the next 3 upcoming IPO's in light with current correction?
1. Bandhan bank: The PB in this case is very high and a bit reluctant.
what about
2. Hind. Aeronautics and
3. Bharat Dynamics ?
Bhandhan Bank with asking price is at a P/E of around 35 plus (on fully diluted equity post issue) looks good in comparison to its peers like Ujjivan Finance (PE 194), Equitas Holdings (PE 1173), AU Small Bank (PE 79).

On performance front, BBL has reported total income/net profits of Rs. 7.95 cr. / Rs. 0.60 cr. (FY15), Rs. 1731.25 cr. / Rs. 275.25 cr. (FY16) and Rs. 4320.12 cr. / Rs. 1111.95 cr. (FY17). For first nine months of the current fiscal ended on 31.12.17 it has earned net profit of Rs. 957.70 on total income of Rs. 3954.51 cr. For last three fiscals it has posted an average EPS of Rs. 6.21 and an average RoNW of 15.27%. So Bandhan is growing FAST.
with this kind of growth, if continues ahead, its PE & PB ratio willcome down.

As on December 31, this fiscal (2017-18) gross NPA ratio was at 1.67 per cent. It is gradually coming down.

With Capital adequacy ratio at 26.25 per cent BBL do not need any capital as of now but as per regulatory requirement, since it got Banking License in 2015 then within 3 years i.e., by 2018 it has to be publicly listed with at least 10% shares issued to public ...... hence this IPO ...... hence opportunity for Investors to invest.

Being in Micro Finance as well as Private Banking Space -

It currently offers a variety of asset and liability products and services designed for micro banking and general banking. Its asset products consist of retail loans including a substantial portfolio of micro loans, as well as micro, small and medium enterprise (“SME”) loans and small enterprise loans. As of December 31, 2017, 96.49% of its Gross Advances were in priority sector lending (“PSL”) compliant with the Reserve Bank of India (“RBI’s”) PSL requirements. As of December 31, 2017, BBL’s retail-to-total deposit ratio stood at 85.07%. As on the same date, bank’s deposits and Gross Advances (including IBPC/Assignment) stood at Rs. 25294 crore and Rs. 24364 crore respectively.

Its Peers are RBL Bank , Ujjivan Finance , Equitas Holdings , AU Small Bank. It is also considering Kotak Bank, Axis Bank, IndusInd Bank, Yes Bank.
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