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Brett Girard, CPA, CA, CFA ICICI Bank Ltd. IBN-N COMMENT Aug 13, 2021

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.
$19.415

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.

BUY
It has done pretty well the last little bit. We are two weeks into the vote for their election. You want to see investment inflows into India in a big way. They have an economy where reforms are necessary.
COMMENT
These two are the biggest banks in India and Brazil. You can't buy ETFs of sectors in specific countries right now such as a Brazilian banks ETFs.You can only do it if you are in these countries. Buy the banks themselves.
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.
BUY
India's leading back. Loan business has grown 20% over the last three years. ROE is 12% vs. the industry's 10%.
TOP PICK
Restructured. Stable. Traditional bank. Extremely big in Southeast Asia, but it's elsewhere too. India's the fastest-growing big economy in the world. It's not China anymore, it's India. Yield is 0.54%. (Analysts’ price target is $28.90)
COMMENT
It has done well but a few years ago it became too aggressive without managing the risks properly. She owns a competitor which has more sustainability.
DON'T BUY

India's largest bank. Investing in India right now makes all the sense in the world. It's the largest population now, surpassing China. India has significant growth, population is relatively young and moving to cities, with more banking needs required. 

His exposure is through HDFC instead.

BUY

A great way to get exposure to India.