Opinions
David Driscoll
ICICI Bank Ltd.
IBN-N
COMMENT
Dec 15, 2016
$7.660
Stock price when the opinion was issued
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Inflation is rising in India because of oil imports, plus strong US dollar. All Indian banks have been falling. With typhoons and people moving to online banking, they’re scrambling. Not the time to be stepping into EM. They’re cheap, but they could be getting a lot cheaper. EMs are twice as risky as NA and European.
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COMMENT
India has been affected by covid. In India, prefers HDFC Bank over IBN, which is the second largest bank. Loan losses have been less at HDFC and they have maintained higher capital ratios. As India rounds the last corner of covid, the name should do well. Longer term demographic and macro trends are positive.
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BUY
The issue with banking is that it's macro-country issue. So, with India, owning a bank stock is really good. As the middle class grows there, banks will thrive, but there's volatility in Indian banks, because their economy is more unpredictable. Overall, he likes this. Either buy a bank or ETF for India.
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The 2nd largest bank in India. They are going through some difficulty, because of what is going on with India’s economy. They are seeing increases in loan loss provisions, while at the same time they have to deal with the backdrop of the macro environment, which is higher than expected inflation. Long-term he thinks they still have focus in future. Given that half the population is under the age of 35, this is a decent investment for a long-term holder.