How much will you value second largest bank in India, largest private insurance company, second largest asset Management Company and leading online stock broking yes I am talking about ICICI Bank. After coming out from government shackles 7 years back ICICI bank did excellent job of creating portfolio of amazing businesses.
Indian economy is swelling fast, thanks to liberalization policies and booming middle class income. Pouring jobs from IT and related services helped fuelling salaries of young middle class professional coming out of college. Disposable income ballooned. Indian marketplace as IT and BPO outsourcer gained ground and exceeded all expectations. Export icome from IT and related services exceeding textile export .
Banks in India used to be state business few years back when Govt started economy liberalization process. State Bank of India, a govt of India bank was defeto standard and a common consumer was filled with pain dealing with these Banks. Situation has improved drastically since then. Private Banks like ICICI, HDFC, and IDBI went through big makeovers and started to present a better face to consumer. These private banks expanded rapidly in metros and big Indian cities to satisfy needs of urban Indian. Now is time to go rural. These banks relied heavily on latest technologies to reduce cost and increase customer satisfaction. Online Banking and ATM spread all over the country.
Indian economy recorded 8% growth last fiscal , demand for housing is rising. Cars and white good are in high demand. ICICI bank is already benefiting from this surge in consumer finance.
Let’s look at some business of ICICI Bank,
1. Banking, ICICI Bank (no 2, growing at 20-30%)
2. Insurance, ICICI Lombard (no 1, private insurer growing 30%)
3. Stock broking ICICI Direct, major online broker)
4. Asset management ICICI Prudential, no 2 mutual fund
Apart from India, ICICI management is showing vision to look beyond local boundaries they recently bought bank in Russia , another economy coming out from shackles. ICICI also has been very successful in attracting non resident Indian community. Indians residing in USA, UK and Middle East remit huge amount of money, and believe me ICICI transfers major chunk of it.
ICICI Lombard is already leader in private insurance companies in India. ICICI direct, stock broking got good hold of
Individual investor who are tired of dealing with those quirky stockbrokers. Prudential ICICI Mutual fund is second largest
Lets look at valuation.. ICICI Bank’s market cap of $17B.
How much will you pay for India's second largest bank growing at 30% rate.
How much will you pay for number 1 private insurance company of India ?
How much will you pay for 2nd largest Mutual fund in India ?
At ADR price of ticker (IBN) $40. It’s already 300% appreciation compared to $12 in 2004. But this is just the tip of iceberg ...wait and watch? or be a part of revolution ...
I am not recommending going and buying IBN tomorrow, giving a serious consideration to this financial behemoth of future in your portfolio.
Indian economy is swelling fast, thanks to liberalization policies and booming middle class income. Pouring jobs from IT and related services helped fuelling salaries of young middle class professional coming out of college. Disposable income ballooned. Indian marketplace as IT and BPO outsourcer gained ground and exceeded all expectations. Export icome from IT and related services exceeding textile export .
Banks in India used to be state business few years back when Govt started economy liberalization process. State Bank of India, a govt of India bank was defeto standard and a common consumer was filled with pain dealing with these Banks. Situation has improved drastically since then. Private Banks like ICICI, HDFC, and IDBI went through big makeovers and started to present a better face to consumer. These private banks expanded rapidly in metros and big Indian cities to satisfy needs of urban Indian. Now is time to go rural. These banks relied heavily on latest technologies to reduce cost and increase customer satisfaction. Online Banking and ATM spread all over the country.
Indian economy recorded 8% growth last fiscal , demand for housing is rising. Cars and white good are in high demand. ICICI bank is already benefiting from this surge in consumer finance.
Let’s look at some business of ICICI Bank,
1. Banking, ICICI Bank (no 2, growing at 20-30%)
2. Insurance, ICICI Lombard (no 1, private insurer growing 30%)
3. Stock broking ICICI Direct, major online broker)
4. Asset management ICICI Prudential, no 2 mutual fund
Apart from India, ICICI management is showing vision to look beyond local boundaries they recently bought bank in Russia , another economy coming out from shackles. ICICI also has been very successful in attracting non resident Indian community. Indians residing in USA, UK and Middle East remit huge amount of money, and believe me ICICI transfers major chunk of it.
ICICI Lombard is already leader in private insurance companies in India. ICICI direct, stock broking got good hold of
Individual investor who are tired of dealing with those quirky stockbrokers. Prudential ICICI Mutual fund is second largest
Lets look at valuation.. ICICI Bank’s market cap of $17B.
How much will you pay for India's second largest bank growing at 30% rate.
How much will you pay for number 1 private insurance company of India ?
How much will you pay for 2nd largest Mutual fund in India ?
At ADR price of ticker (IBN) $40. It’s already 300% appreciation compared to $12 in 2004. But this is just the tip of iceberg ...wait and watch? or be a part of revolution ...
I am not recommending going and buying IBN tomorrow, giving a serious consideration to this financial behemoth of future in your portfolio.
posted by Ajay Khandelwal at 1:29 PM
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