On serious note, we will witness a good run in even PSU bank stocks too. But the banks with good books (Net Interest Margins) will outshine others, that's why I'm betting on this one! :)
don't get me wrong I wasn't nitpicking through your picks also since you're into this what do you think about credit access grameen ,Spandhana Sphoorty and the Micro finance situation ?
Second I do have a bit of exposure to psu banks like Sbin PNB and Canara are there any better picks from your side , would also like to know the qualitative reasoning behind your strong conviction.
What do you feel about Bandhan Bank and CSB bank.
Also why are you only looking at the net interest margin is like the npa situation void now, what about spillages and the capital cushioning and liquidity what effect do these have on the net profitability ?
Also are there any specific IT companies which will benefit from this apparent financialization of India?
Thirdly the insurance sector recently like icici pruli has had a breakout pullback and NIACL seems to have a lot of growth potential what would your best picks be from this value chain.
Since you said yourself that you're a BFSI consultant looking forward to more insights from your side📈📈
1) Financial sector in a whole will anyways moving towards a lot of mergers. & Covid has accelerated the same. hence we will expect a lot of mergers going forward.
Particularly with Spandana, I find its founder a true entrepreneurs. he actually saw a huge gap & while he setup his company, he actually helped a lot of villagers. Hence, for me it's a Great management at bad times story (Like Manish Pabari says). Hence, I'm bullish on this.
2) Capital adequacy & NPA should have busted the books by now. but you can check any reports by credit health assessors, there is no severe challenge as expected due to Covid. Hence, a good bull run is due
PSB pick for me is only Federal Bank. (Though exact order of preference is: DCB>>Federal Bank>IDFC Bank)
3) I too second on the growth potential of Insurance sector. please see it's been 4 months since I'm posting about NIACL (I'm Still holding with more that 50% return so far, & it's just a starting I will definitely make a 100-200% for sure on this)
& after Covid 3 wave will be over by Sept or Nov 2021 end. Then, I will add HDFC Life too!
~Hope this will help! :)