General Trading Chat

[timepass]

https://www.livemint.com/industry/b...bank-says-two-top-bankers-11576571050271.html

Uday Kotak best suited to acquire Yes Bank, says two top bankers


Mumbai: Two of India's top bankers on Tuesday opined that Kotak Mahindra Bank (KMB) is best suited to acquire smaller and capital-starved rival Yes Bank.

Yes Bank's capital buffers have dipped on accelerated non-performing assets recognition under new chief executive Ravneet Gill earlier this year.

The private sector lender's capital raising plan is also passing through uncertainties and there are speculations on whether Yes Bank is an acquisition target, which has been denied by its management.

"I think Uday (Kotak) is the best candidate to acquire Yes Bank. You need deep pockets, Uday has that," SBI Chairman Rajnish Kumar said at Times Network's India Economic Conclave here.

When the same question was posed to third-largest lender Axis Bank's Managing Director and CEO Amitabh Chaudhry, it was answered with the same suggestion.

Maybe Kotak bank will tank down tomorrow

 

[siddhant4u]

Maybe Kotak bank will tank down tomorrow

Or may be it is going up in anticipation and crash when actual confirm news comes out

 

[sridhga]

https://www.livemint.com/industry/b...bank-says-two-top-bankers-11576571050271.html

Uday Kotak best suited to acquire Yes Bank, says two top bankers


Mumbai: Two of India's top bankers on Tuesday opined that Kotak Mahindra Bank (KMB) is best suited to acquire smaller and capital-starved rival Yes Bank.

Yes Bank's capital buffers have dipped on accelerated non-performing assets recognition under new chief executive Ravneet Gill earlier this year.

The private sector lender's capital raising plan is also passing through uncertainties and there are speculations on whether Yes Bank is an acquisition target, which has been denied by its management.

"I think Uday (Kotak) is the best candidate to acquire Yes Bank. You need deep pockets, Uday has that," SBI Chairman Rajnish Kumar said at Times Network's India Economic Conclave here.

When the same question was posed to third-largest lender Axis Bank's Managing Director and CEO Amitabh Chaudhry, it was answered with the same suggestion.

I do not see any synergy between the two banks.

A merger is not the following:

2+2=4
5-3=2


A merger is the following:

2*3=6
or 2^3=8


Yes Bank vs. Kotak Bank
1. Both banks are urban based with similar geographic spread.
2. Both are good in their technology and are deeply invested in it and would find it difficult to change.
3. Both banks have deep work culture which may/may not be amenable to working along with a competitor.
4. What advantage will Mr. Kotak get out of this?


A good merger/ takeover organisation would be following:

1. A deep pocketed NBFC looking into upgrading into a bank. (Advantage: Better access to cheaper funds)
2. Some regional financially strong bank looking to go pan-India.
3. Some regional financially strong bank which needs the technology access.
4. Some regional financially strong bank which needs younger agressive work culture to transform itself.
5. A foreign banking entity looking to gain foothold in India (Difficult with RBI norms)


Mr. Kotak does not need any of these. Why would he take up this headache?

 

[timepass]

TV news says something about NPA divergence in BoB.

Stocks to Watch: Bharti Airtel, Vodafone Idea, Bank of Baroda, Jet Airways, ZEEL
https://www.livemint.com/market/sto...f-baroda-jet-airways-zeel-11576636107734.html

 

[timepass]

Open high in JSPL

 

[siddhant4u]

I do not see any synergy between the two banks.

A merger is not the following:

2+2=4
5-3=2


A merger is the following:

2*3=6
or 2^3=8


Yes Bank vs. Kotak Bank
1. Both banks are urban based with similar geographic spread.
2. Both are good in their technology and are deeply invested in it and would find it difficult to change.
3. Both banks have deep work culture which may/may not be amenable to working along with a competitor.
4. What advantage will Mr. Kotak get out of this?


A good merger/ takeover organisation would be following:

1. A deep pocketed NBFC looking into upgrading into a bank. (Advantage: Better access to cheaper funds)
2. Some regional financially strong bank looking to go pan-India.
3. Some regional financially strong bank which needs the technology access.
4. Some regional financially strong bank which needs younger agressive work culture to transform itself.
5. A foreign banking entity looking to gain foothold in India (Difficult with RBI norms)


Mr. Kotak does not need any of these. Why would he take up this headache?

Agree. However Kotak could buy it if they know its available cheap. None of private’s banks arw interested in rural area so urban reach is good. Plus kotak will not have to sell off his precision kotak bank shares (rbi rule which he is fighting in court)

In all these, one cannot forget Axis Bank as contender. If RBI thinks yes bank is not viable they could facilitate merger with Axis. Remember either this or govt take responsibility of the bank which is general practice in Indian banking sector.

Edit: for NBFC, its Bajaj who could dive in the sector, or who knows Reliance too!

 

[timepass]

Monday may be a volatile session because of Jharkhand assembly election results.

 

[timepass]

Fitch is at it again... Stable rating with lower growth rate.

Fitch reaffirms India rating at BBB- with stable outlook; sees FY20 GDP growth at 4.6%
https://www.moneycontrol.com/news/b...able-sees-fy20-gdp-growth-at-4-6-4749521.html

 

[moneymanager1980]

Centre seeks to restrain Reliance Industries stake sale to Saudi Aramco
..
any impact on Monday ?

 

[timepass]

Looks like a big news :

Anand Mahindra to step down as Mahindra Group executive chairman next year
In an official statement, the company said its board has approved the transition of Anand Mahindra's role from executive chairman to non-executive chairman.
https://www.indiatoday.in/business/...-board-approves-transition-1630093-2019-12-20