The recent news of ING Vysya trying to acquire stakes in Centurion Bank of Punjab and Kotak Bank and the subsequent denial (or no comment) from ING Vysya indicates that there are some activities going on in Indian Banking Sector. After some subdued session the Benkex is actively participating in the present rally. State bank of India is already shining with all the news of stock split, bonus and preferential allotment of shares. ICICI Bank is trading at all time high. The growing interest of foreign banks to have foothold in our capital market certainly needs some vehicle. The mid cap private banks are the best bet for them.
How and where the FIIs have their exposure is a fascinating study. I have come across such a study in the Hindu Businessline (link-here); it sported a table on some prominent FII moves. FIIs are following some stock specific strategy not the sector specific buying. However it was noted the FIIs avoiding the oil refining sector and is going slow in pharma and health care sector (exception Glenmark, Glaxo and Nicholas Piramal).
Coming back to our context the FIIs raised their stake in Yes Bank from 15.3% in June-06 to 52.51% in june-07, i.e. a raise of 37.21%. It certainly is a substantial increase. Yes Bank has already established a niche model of banking which is different from other banks and seems it has all the support from Rabo Bank. Mr. Rana Kapoor is an ex-Rabo Bank Executive and Rabo Bank has a substantial stake. The above presents some rosy picture for the stock holders of Yes Bank.
The Centurion Bank of Punjab and Kotak Bank will definitely qualify to get a hold from Brokers if not outperformer.
Earlier post: SPARK IN THE BANKING STOCKS
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