Rajen Shah, Chief Investment Officer of Angel Broking said he would be betting on Aditya Birla Nuvo, Bajaj Finserv, Cholamandalam and M&M Financial as he believes these are very strong candidates to get the banking license.
Shah told CNBC-TV18, “We are betting on four companies which we believe are very strong candidates to get the banking license. First is Aditya Birla Nuvo, second is Bajaj Financial Services, third is Cholamandalam Investment and Finance Company and fourth is Mahindra & Mahindra Financial Services. The reason is that all four have very strong promoters. They have very good integrity and three of them have got very strong rural presence.”
He further said, “In the last 15 years, Kotak Mahindra Bank’s market cap has moved up from nothing to Rs 50,000 crore. IndusInd Bank’s market cap has moved up from nothing to about Rs 22000 crore and Yes Bank from nothing to almost Rs 17000 crore. So, if any of these companies, get license, the wealth creation in these companies could be tremendous.”
“I would not bet on IFCI. I am not a big fan of this company. It has not done anything for so many years. I am not very hopeful of this company getting that license. To get the banking license one needs a very strong promoters and with highest integrity. Also, if they have rural presence, then that is better for these (four) companies rather than IFCI and IDFC of the world. So, my bet would be these four,” Shah added.
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