Indian Banks IFN and HDB
IFN is the symbol for ICICI Bank, the biggest private bank in India. HDB is the symbol for HDFC Bank, a close second.
For those of you who havent been to India in a few years, these banks are growing like weed. They are everywhere. In the last few trips I have made to India, I find these things pop up in the most unusual of places. And they know how to market themselves.
However, there are hundreds, or even thousands of other banks in India. Bank consolidation will eventually come-the advantages of economies of scale are too good to ignore. And these two are the big kahunas. Unless the managements do something really odd or fishy, these will remain the top banks in India for years to come. They may not be No. 1 or No. 2, but as long they are in the top 5, shareholders will make money.
So for the faint of heart, who can't take the volatility of SIFY and REDF, these are good proxies. There is an India ETF in the works, they tell me, but for now, Banks are quite a good bet. Some will argue that they are a better bet than a general ETF. Because nowhere but in banking can you clearly see economies of scale put to very efficient use, with relatively easy execution (unlike merging two automakers, for example).
I realize that I can't come up with something intelligent to say every day, so I have decided to just post as often as I can, without the condition of posting daily. I do promise something new several times a month....
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If you subscribe to the Wall Street Journal or the Prudent Speculator using the links above, I get a commission.
Sanjay John G.
For those of you who havent been to India in a few years, these banks are growing like weed. They are everywhere. In the last few trips I have made to India, I find these things pop up in the most unusual of places. And they know how to market themselves.
However, there are hundreds, or even thousands of other banks in India. Bank consolidation will eventually come-the advantages of economies of scale are too good to ignore. And these two are the big kahunas. Unless the managements do something really odd or fishy, these will remain the top banks in India for years to come. They may not be No. 1 or No. 2, but as long they are in the top 5, shareholders will make money.
So for the faint of heart, who can't take the volatility of SIFY and REDF, these are good proxies. There is an India ETF in the works, they tell me, but for now, Banks are quite a good bet. Some will argue that they are a better bet than a general ETF. Because nowhere but in banking can you clearly see economies of scale put to very efficient use, with relatively easy execution (unlike merging two automakers, for example).
I realize that I can't come up with something intelligent to say every day, so I have decided to just post as often as I can, without the condition of posting daily. I do promise something new several times a month....
Subscribe now to The Wall Street Journal and get up to 8 weeks FREE
The Prudent Speculator -- Ranked #1 by Hulbert for 10, 15 and 20 year performance...Click Here!
If you subscribe to the Wall Street Journal or the Prudent Speculator using the links above, I get a commission.
Sanjay John G.
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