Saturday, September 30, 2006

Indian Banks IBN and HDB

India's top two private banks-ICICI and HDFC Bank have shown a strong rebound. These are the Citibanks and Bank of America of India; investing in these is essentially a direct bet on the Indian economy. As Citibank and BoA shares appreciated significantly during the great bull run of the US in the 1990s, the Indian Banks should do well in the years to come.

BTW, came across an interesting article on Indian ADR premiums. The author is discounting the appreciation of the Indian Rupee vs the dollar; a very real contributor to the premiums. The Indian rupee will appreciate in real terms against the dollar for many years, and ADRs trading at a premium is a normal outcome of this.

See this article here.

Sanjay John G.


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