Icici Bank.

swapna81 · #1 11th December 2006, 12:48 PM

What are ur views on ICICI bank.I hav got it for 840..it opened at 865 so thought it will be good...but right now it is at 822.

What shall i do.Pls guide me.

Bye,
swapna.

jnj333 · #2 11th December 2006, 02:19 PM

Hold , This is one of the best banking stock. Dont Trade this stock. Take a medium / long term view.

mohanlate · #3 11th December 2006, 02:39 PM

Hold..Agree with jnj333. ICICI bank has largest number of retail outlets. A hike in CRR rate should not affect ICICI so much.

Thanks,

Mohan

ivanboesky · #4 11th December 2006, 02:57 PM

And the relation between the number of retail outlets, and a CRR hike not affecting a bank is ........... ???

swapna81 · #5 11th December 2006, 03:09 PM

Thanks for all ur views guys...

kkseal · #6 11th December 2006, 03:33 PM

Quote:

Originally Posted by mohanlate

Hold..Agree with jnj333. ICICI bank has largest number of retail outlets. A hike in CRR rate should not affect ICICI so much.

Thanks,

Mohan

No. of retail outlets has nothing to do with CRR.

Hike in CRR means a cutdown on liquidity i.e. banks will now have less money to lend (since they have to deposit more with RBI as statutory cash reserves).

RBI has done this to curb inflation by cutting down on the money supply.

Swapna81 : You have bought ICICI at a time when the outlook is not great for bank stocks (Banks are also under interest rate pressure which can affect their Net Int Margins); but ICICI has good mgmt, a good insurance biz and should do well in the long run.

Regards,
Kalyan.

sundar · #7 11th December 2006, 07:06 PM

icici bank is no. 1 bank in private sector. it is a rapidly growing bank. it is acquiring sangli bank and the reaction to this is not positive with the broking community. also rbi intervention on credit is another factor which brought down all the bank share prices today. hence do not get panicky. this stock will surely climb up and up in months to come.if any one likes, buy at this low price to get good benifit in 3 months.
sundar

mohanlate · #8 11th December 2006, 08:48 PM

Quote:

Originally Posted by ivanboesky

And the relation between the number of retail outlets, and a CRR hike not affecting a bank is ........... ???

Hi Ivanboesky,

Monetory authority can curb inflation by following ways -
1. Increase the rate at which the central bank (RBI) lends money to bnks
2. Increase the CRR-in this case the banks have to park more money with RBI and therefore have less to lend to their customers.
3. Sell goverment bonds and absorb money from the system.

The last option is the most common and effecient way to reduce the money supply. The second one, i.e. hike in CRR, is not that common. I think the last time RBI did this was in 2004. Usually this is followed by a interest rate hike. Eitherways, when such a think happens banks have less money to lend. Also it becomes very choosy whom it lends out to.

ICICI bank has a better marketing network, and it is aggressive in further strengthening itself. This is one of the reason why it went for Sangli bank. When a bank has a better retail network, product diversification etc., it can sustain margin growth. Therefore for ICICI it should not be very difficult absorb to cost over a period of time.

Hope that answers your question

Thanks,

Mohan

beginner_av · #9 11th December 2006, 09:24 PM

did u get the answer? who r u...long term, short term trader/investor? why did u buy this? what is ur account size? how many have u bought? what is ur trading philosophy? how important is the money to you? without this how the hell can anyone answer ur question correctly...each will tell their OWN view, not ur solution.

kkseal · #10 11th December 2006, 10:04 PM

Quote:

Originally Posted by beginner_av

did u get the answer? who r u...long term, short term trader/investor? why did u buy this? what is ur account size? how many have u bought? what is ur trading philosophy? how important is the money to you? without this how the hell can anyone answer ur question correctly...each will tell their OWN view, not ur solution.

Yes time horizon makes a lot of difference.

If you are a long term investor No worry With economy growing at 8-9%, consumption on the rise, banks - the providers of money - can't be left behind. If you have surplus funds you can even buy more at lower levels to reduce your (average) cost of purchase.
If you are a short-term trader you are more likely stuck for the time being.

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