As my previous blog was based on a Indian Pharma company for investment in this blog we will discuss a banking stock which is in hot trend now Daily it has a different story like yesterday it had presented a huge quarterly loss, today rating agency downgrade rating and tomorrow we might heard that international agencies downgraded the stock
Yes you are guessing right I’m talking about YES Bank.
Yes Bank is India’s fourth largest private sector bank, founded by Rana Kapoor and Ashok Kapur in 2004. It primarily operates as a corporate bank, with retail banking and also asset management as subsidiary functions.
Banks core business
Yes Bank Limited derives most of its revenues through arranging syndicated loans and through corporate banking. It operates as three entities – Yes Bank, Yes Capital and Yes Asset Management Services. As per the banks website as well as information published, these are bifurcated as:
#Corporate and Institutional Banking
# Investment Banking
# Corporate Finance
As of September 2018, Yes bank had taken syndicated loans from eight large international entities including ADB, OPIC, European investment bank, banks in Taiwan and Japan for amounts ranging from US$ 30 Million to US$ 410 Million, which it in turn lends to small and medium scale enterprises as well as large corporate. It has also both taken as well as given short term loans to a number of retail and corporate banks in Taiwan, Japan, USA and Europe. It has a strategic partnership with the US government based OPIC and with Wells Fargo.
Today many Business News channels are giving call that doesn’t buy this stock same thing heard from people also that Yes Banks game over for now.
But in my opinion when everywhere is Fear than it’s an opportunity for long term because this type of blue-chip stocks will not give this type of opportunity to create huge wealth
If I’m not wrong same thing was happen with ICICI bank and Axis bank during Feb 2016 these stocks were traded 175 & 370 respectively and look today they are trading at 400 & 750+.
So if you have patience and if you courage then it’s a Golden period to accumulate this gem. Stock might fall upto 140 but nobody sure about that so SIP is the best way to accumulate this stock.
Just buy & forget the stock for next 7 to 8 years stock will be in 4 digit sure.
In stock market nobody is perfect and nobody can enter or exit at perfect level.