With the air clear on leadership and reverse merger issues, the bank is now all set for a rerating. Its share price has already risen 57% in the last six months. The bank is now gearing up for a faster loan growth.
Ravishankar's portfolio includes online learning unicorns Byju's and Eruditus, lenders Five Star Business Finance, Mannapuram and Equitas home design firm Home Lane and cloud kitchen firm Rebel Foods
In India, the large private banks may not need such partnerships, but the ailing public sector banks and the troubled old private sector banks can gain from such deals. Partnerships and technology can also benefit cooperative banks which have been on the RBI’s radar for a while now
Total income during the quarter under review rose to Rs 922.59 crore from Rs 750.96 crore in the year-ago period.
Apart from this, RBI has also that any 'no objection', if and when given on the Scheme of Amalgamation, would be without prejudice to the powers of RBI to initiate action if licensing guidelines are violated.
Net Interest Income (NII) is expected to increase by 40 percent Y-o-Y (up 7 percent Q-o-Q) to Rs. 356.8 crore, according to Kotak.
The central bank reiterated in its letter to the banks that promoters of small finance banks should list their banking units separately within three years of operation. This is as per the central bank’s licensing requirements for small finance banks.
With a pan-India presence and relatively high-yielding book, they remain attractive candidates for mergers and acquisitions by relatively larger entities.
Stock prices have already taken cognisance of the positive changes. However, acceleration in earnings going forward or any inorganic development along with probable re-rating of valuation multiples make Equitas and Ujjivan worth exploring for the long-term.
Equitas was roiled by the problems in the micro finance sector post demonetisation, and is still feeling the pain. AU Finance on the other hand, has been plodding steadily in its new avatar as a small bank. So, do you buy them?
Ashwani Gujral of ashwanigujral.com suggests buying Motilal Oswal, Reliance Capital, Indian Oil Corporation and Godrej Industries.
In an interview to CNBC-TV18, HK Raghavan, President-Inclusive & Outreach Banking at Equitas Holdings spoke about the results and his outlook for the company.
I believe cement can be one of the best sectors in the next 12 months, said Harsha Upadhyaya, CIO Equity, Kotak MF.
In an interview to Prashant Nair and Ekta Batra, Rahul Arora of Nirmal Bang Institutional Equities shared his views on the fundamentals of the market and the outlook going forward. He also spoke about specific stocks and sectors.
In an interview to CNBC-TV18, SP Tulsian of sptulsian.com spoke about his outlook on the market and specific stocks.
In any industry, increase in competition thins margins. In banking, the number of players is set to increase from 45 in 2014 to 66 by 2016, which is a 45 percent rise in the number of competitors.
