Saturday, August 2, 2008

Stock Idea: Bank of Rajasthan

Total income of the bank, YoY, rose 25% at Rs.341.40 crore. Treasury operations were at Rs.116.46 crore as against Rs.97.91 crore in Q1FY08; Corporate or wholesale banking income was at Rs.126.92 crore while retail banking income was at Rs.92.26 crore. PBT was down 11% at Rs.37.76 crore. The bank managed to reduce its taxation by 44% and that helped the net profits, which was more or less flat at Rs.30.92 crore as against Rs.30.17 crore in Q1FY08.

Its capital adequacy was at 12.26% compared to 11.90% last Q1. Gross NPA was at 1.65%, down from 2.70% while net NPA was at 0.42% as against 0.62% in previous Q1.

The Bank is now well on its path to make a bigger presence in the Indian banking sector. It has converted all its branches online on a pan India basis and has emerged as one of the most technology driven private sector banks. The bank currently has a network of 469 branches and has applied to RBI for an additional 40 branches.

The bevy of activity in the bank, specially with so many FIIs picking up a stake in the bank indicates that many are stocking up their stake, in a run-up to the opening up of the banking sector to foreign investors in April 2009. Currently, this is one of the most profitable banks in the Indian banking sector, and it is little wonder then that most of the FIIs want to be prepared to hike their stake beyond 5% once they are presented with the opportunity.

Banking stocks might not be too good right now, but stay invested, as once April 09 comes, the entire dynamics of the banking industry will change.

Source: sptulsian.com

Disclaimer

The information in this publication is provided by http://www.moneybazzar.blogspot.com/ is intended for use for Readers & Traders . Every effort is made to provide accurate information, but http://www.moneybazzar.blogspot.com/ cannot guarantee the accuracy of the information or of the market analysis. This is a newsletter and is for informational purposes only. It is not a solicitation or offer to buy or sell futures. There is a high risk of loss in trading futures. You should not trade with money that you cannot afford to lose. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this newsletter. The past performance of any trading system or methodology is not necessarily indicative of future results.



free counter