Why exit Bandhan bank to enter RBL bank instead?
Hi Divyanshu,
I had 3 banks ,bandhan , au bank and rbl. I found that rbl has maximum geographical diversification. Itâs presence on top websites like goibibo doesnât go unnoticed. The rbl rewards program is a elaborate offering, which needs tech⌠and also analytics. They partner with Bajaj finance in cobranded cards which adds to their reach.
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Sounds reasonable enough.
I love both firms myself. But donât know too much about RBL and their growth engines.
I highly suggest that you also do a âWhat can Hurt meâ, âwhat can go wrongâ analysis as well.
If you are ready to face the music when the time comes and have a process for managing said risks, then itâs a good place to be investing from.
Make sure you donât fall too much into the negative vibe and I think it will be a very useful exercise for you.
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Hi Naveen,
There is a gap between unserved need and what banks can offer in a nation where people are continuously becoming loan eligible in both cities and the hinterland. That latent need is being addressed and represented by lending apps (There are many now including Mobikwik and paytm postpaid). When I came to a metropolitan city in 2005 , I had no doubt that I would earn enough money to pay advance for my rented house, but there was no way but to ask friends and family. Now that kind of a need is served by the digital lending apps. The lending apps can do credit score based assessment , yet they have to partner with a Bank or an NBFC as well for the backend.
ROE improvement in RBL Bank is to watch out for, and the investment thesis is that it will improve as they gain distribution and scale. I donât want to become a lakir-ka-fakir and just look at ROE , rather let a broad level thesis and intuition to become key.
For the most part my investment thesis is based on the premise that there is going to be a lot of mobile app based lending and those who can offer the backend or both frontend and backend for the same can see a new wave of growth.
In the above interview , he talks about a few strengths and I buy those things he said until they are proven wrong.
Canara, HDFC are offering instant one hour online loan for as much as one crore. Amalmagation of lending and tech surely looks like a future to be onâŚ
Logically, most banks will entrench it into their systems. The ones who are left behind will trade at low PEs.
The TOTAL brand looks to be the leading brand for VST Industries, based on my personal checks. I tried it and its pretty smooth for a 5 rupee cigarette.
Wanted to share this since I focus on opportunities in this area, and believe that aided by AI , fintech can be the next wave of growth.
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Can you please share your current portfolio? It was only 2 stocks previously and RBL bank was one of them. Npaâs have hit it hard and the same is reflected in itâs price. Do you still hold RBL bank? Whatâs your current opinion on RBL bank? Do you find any new fintech opportunities currently in the listed space?
I had exited RBL after the bad results ⌠(of course booked a good loss). I moved that money into AU Bank after Au Bank Q2 results.
The existing listed players should benefit from fin-tech I feel. My criteria is they should be growing very fast and should feel the need of tech to continue the growth - that is all. Lending related tech can not remain in silos, it is generally available to all players pretty quickly (observation).
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Continue to believe there is nothing growing faster than fintech in india/us/any other market, nothing has grown as fast. Yet the adoption of faster and ubiquitous payment methods hasnt led to faster retail credit growth. Hope tha changes soon and mobile payments tap into creditors.