The reason I prefer Ujjivan is because it’s valuations are cheaper, better geographic diversification and better GNPA and NNPA ratios. But both have some pain left in theNPA and pre-demonetization growth fronts. The valuation has caught up a bit as Equitas fell from Rs170 odd.
I will sound extremely biased towards Ujjivan so pardon me
In this business of possible tail risks, geography diversification must be very important. Ujjivan’s GNPA had been extremely low pre-demon (thats because their loan book was totally composed of group loans which have negligible NPLs). Their CASA is low because their strategy until now has been to garner institutional deposits. Hence, a lot of scope for CASA improvement as all branches are converted to SFBs. They only yet have ~100 liability branches. Samit Ghosh’s track record impressed me more (I’m not undermining Equitas management). And I love Ujjivan’s logo!!
Disc. core holding for very LONGTERM. Biased because invested or the other way round, I do not know.
Looks like equitas SFB is finally back on track reducing its npa’s and further provisions and improving operational efficiency. Equitas SFB decision to move aggressively toward secured loans is starting to show results.
How is Bandhan Bank placed vs Equitas n Ujjivan? Are tailwinds back for whole of the sector?
it was Demonetisation that separated men from the boys, Bandhan is incomparable with equitas or ujjivan, although these new kids on the block has a long way ahead, I think bandhan should trade on par with hdfc bank given its superior asset quality or return on avg assets/equity.
This 1 sector is where ocean of money that just lies underneath and the potential is still untapped, ofcourse high returns comes with high risk, having said that the indian economy is something that would just suck out whatever you drop in it
Disc: hold all 3 since their IPOs
3406957 shares have been bought for delivery today. It was last seen in 1st week of Jan 2018. In last 365 days, it is 4th highest day that has seen such a huge delivery.
Some fund off loaded 2,424,812 shares Yesterday. Despite this stock is steady, watch out.