I was looking for some contrarian bets.
I have been researching companies for some good picks where I have margin of safety.
to be honest, I didn’t find any with limited time of hard work as I am a full time IT professional…
I am studying IOB and have a tracking position.
This Post is to clear my questions
Life time HIGH is 194 Rs
Face Value : 10
Current price around 23.50
Stock is trading below Book value of 34.
Bank Recently sold its one of its NPA to Edelweiss
Recent Management interview brings in some confidence.
What are the initiatives taken to address NPAs accounted for by corporates?
About 52 per cent of NPAs are in the corporate segment with majority of them in the consortium accounts. We have an exposure in 10 of the 12 large NPA accounts recently announced by the RBI for resolution under reference to NCLT. The 10 accounts constitute one-fifth (about 20 per cent) of our NPAs. Here we see a timely resolution which is expected to take place — in 180 days or 270 days. Most of these accounts are asset-based. So, we are confident of recovery. Further, having identified these accounts as NPAs, we hold sufficient provisions for their accounts.
on Top of that Recent government announcement on merging PSU or pumping liquidity will be positive for this bank.
This bank is not generating any operational loss…
I have below questions.
Since Government is accelerating the NCLT process and when the bank offloads all the NPA’s
I think this bank should Turn around over the period of 2 years…
Do you agree with me ???
No wonder this bank is a major wealth destroyer but now its provides a margin of Safety as it is trading way below its book value and backed by government.
Do you Agree ??
I haven’t covered any financials here as nothing is much laudable about financials expect the NCLT process which should help the bank to recover the majority of its bad loans
I want to understand from senior boarders if my thought process is correct.
and throw some light on my little analysis.
I am invested in this company and would like to add more after I get more confidence based on my research.
My major questions is when all NPA’s are offloaded to Asset restructuring companies or through NCLT process isn’t this bank should turnaround ? Please provide some thoughts.