Read the following two reports. 1. Report A Click Here. 2. Report B Click Here. The above report forms the next stage in a progress which had been taking place for sometime by now. It is already mentioned in Report A.
The prices of Axis Bank and Yes Bank had been fluctuating aggressively for some time. The offloading of HDFC by Citi Bank had not made much difference to the scrip price. Mohindra may part ways with Kotak in coming days. Kotak is under pressure of rules and regulations to offload his holding or issue more shares.
In coming days, we may see new players coming into Banking if RBI issues new licenses for which there were stories some time back. We may see Kumarmanglam Bank, Rahul Bajaj Bank, Anil and Mukesh Ambani banks. There may be some more players from south. There may be mergers and takeovers.
Banks as per tradition definition is a collecting and disbursing agent. They also finance. With more players, and more defined rules and regulations, the scene would be dominated by animal spirit if RBI manages well. There may be more job opportunities in bank on one hand, then on the other hand, there may be more financial products for all level of business. Quite a rosy picture. But, it also hide in it peril of too much animal spirit.
In share market, you will have a new aggressive area which may replace the present IT counters.
India is basically an agricultural economy. In case of mining, there is lot of gap which is to be covered. In industry and technology, India has yet to progress. With such a new banking weather, these fields now should start sowing in real sense. If these economists are to believed, then, the future is bright for Indian economy. And for the share market, the new sought after counters and soon to be major counter can be banking.
Nationalized bank should now get ready to face the real challenge. They are already facing the music and chorus will begin.
