Gopinath Posted November 22, 2014 Share Posted November 22, 2014 Here is another cloner idea: feel free to comment! http://valuealert.blogspot.com/2014/11/monopoly-bank-in-india-jammu-and.html Link to comment Share on other sites More sharing options...
peter1234 Posted November 22, 2014 Share Posted November 22, 2014 In his last presentation at Boston College in October, Pabrai asked the students what stocks they liked. One of them mentioned this bank and Pabrai seemed to like it quite a bit. ;) Link to comment Share on other sites More sharing options...
LC Posted November 22, 2014 Share Posted November 22, 2014 I know a few guys who have worked as CAs for Indian banks, they confirm corruption is quite rampant. I've always had a policy of blindly avoiding anything with perceived corruption but I realize that some forms of "corruption" are the cultural way business gets done. And, ultimately does not fleece shareholders. I was wondering the boards thoughts on the issue and how it relates to JK bank. Link to comment Share on other sites More sharing options...
investor-man Posted November 23, 2014 Share Posted November 23, 2014 In his last presentation at Boston College in October, Pabrai asked the students what stocks they liked. One of them mentioned this bank and Pabrai seemed to like it quite a bit. ;) The article in the first post shows Pabrai owns 2.56% of the shares. Link to comment Share on other sites More sharing options...
investor-man Posted November 23, 2014 Share Posted November 23, 2014 In his last presentation at Boston College in October, Pabrai asked the students what stocks they liked. One of them mentioned this bank and Pabrai seemed to like it quite a bit. ;) The article in the first post shows Pabrai owns 2.56% of the shares. And in another post on the same blog about another Indian bank, it's mentioned that Pabrai bought 2% ownership of that: http://valuealert.blogspot.com/2014/09/best-run-private-bank-in-india-south.html Looks like Pabrai is building a basket of Indian banks. Any idea where the author of the blog is getting the ownership info? Link to comment Share on other sites More sharing options...
Morgan Posted November 23, 2014 Share Posted November 23, 2014 I was just in that region for a few weeks and I talked to a number of business people and they all said corruption is widespread, but it's the only way things get done. One guy who runs a construction firm that builds infrastructure told me he budgets for 35% of his costs to go towards paying bribes. 35%?! That's crazy in my eyes! This is just anecdotal evidence, but most of the J&K ATMs I saw were in worse shape than the State Bank of India ATMs. Not that the State Bank ATMs are beautiful by any means. As for J&Ks banking operations and viability etc, I do not know anything about that. The entire region is going gang busters though. There is construction everywhere. In that context, building a basket of Indian banks is not a bad idea at all. Even if their ATMs suck. Link to comment Share on other sites More sharing options...
investor-man Posted November 24, 2014 Share Posted November 24, 2014 I found a post with "updated" numbers on Pabrai's holdings in South Indian Bank: http://mmb.moneycontrol.com/india/messageboardblog/message_thread/26024353/27824353 At the current prices and assuming Pabrai Funds has $690million under management, the combined holding of both banks make up about 8.4% of Pabrai Funds' assets. "Basket" isn't really the right term for what he's got. I'd guess he's making these banks about a 10% position when all is said and done. Definitely compelling and worth looking into further. Gopinath, thanks for posting! Link to comment Share on other sites More sharing options...
oddballstocks Posted November 24, 2014 Share Posted November 24, 2014 In his last presentation at Boston College in October, Pabrai asked the students what stocks they liked. One of them mentioned this bank and Pabrai seemed to like it quite a bit. ;) The article in the first post shows Pabrai owns 2.56% of the shares. And in another post on the same blog about another Indian bank, it's mentioned that Pabrai bought 2% ownership of that: http://valuealert.blogspot.com/2014/09/best-run-private-bank-in-india-south.html Looks like Pabrai is building a basket of Indian banks. Any idea where the author of the blog is getting the ownership info? You can pull ownership from Bloomberg, as of 11/23 the biggest holder was the Indian government with a 53% position, Aberdeen Asset at 4.6%, Route One Investment Management at 3.4% then Fidelity, DFA, Wellington, Morgan Stanley etc. Link to comment Share on other sites More sharing options...
investor-man Posted November 24, 2014 Share Posted November 24, 2014 Bloomberg... wish I had one ;) Link to comment Share on other sites More sharing options...
oddballstocks Posted November 24, 2014 Share Posted November 24, 2014 Bloomberg... wish I had one ;) That is until you're writing the check to pay for it.. Link to comment Share on other sites More sharing options...
Gopinath Posted November 24, 2014 Author Share Posted November 24, 2014 You can look at it in moneycontrol.com, for Jammu and Kashmir bank, http://www.moneycontrol.com/bse/shareholding/shp_public_shares.php?sc_dispid=JKB#JKB Link to comment Share on other sites More sharing options...
MrB Posted November 24, 2014 Share Posted November 24, 2014 I know a few guys who have worked as CAs for Indian banks, they confirm corruption is quite rampant. I've always had a policy of blindly avoiding anything with perceived corruption but I realize that some forms of "corruption" are the cultural way business gets done. And, ultimately does not fleece shareholders. I was wondering the boards thoughts on the issue and how it relates to JK bank. I think it is a good starting point for anyone looking at these banks. Assume they are over-leveraged on really bad assets with a lot of corruption and inept management. Try to get somewhere from there with your analysis, but in my experience you will not get very far. I have not spoken to one local investor that does not tell you to avoid them like the plague. Think it is very difficult to get and edge; not impossible, but improbable. Link to comment Share on other sites More sharing options...
sampr01 Posted November 24, 2014 Share Posted November 24, 2014 Here is the direct link from BSE india JK Bank http://www.bseindia.com/corporates/shpperent.aspx?scripcd=532209&qtrid=83&CompName=JAMMU%20KASHMIR%20BANK%20LTD%20&QtrName=September%202014 South Indian Bank: http://www.bseindia.com/corporates/shpperent.aspx?scripcd=532218&qtrid=83&CompName=SOUTH%20INDIAN%20BANK%20LTD%20&QtrName=September%202014 My advise is don't rely on the comments made by Indian CA's or Non resident Indian's, and they will exaggerate everything by 10 folds. No body is disputing THE EVIDENCE OF corruption in India (corruption is there, but you still need assets to get a loan). Here are my thoughts on Indian Banking in general Banks won't lend 10 cents with out collateral assets (even with bribes you still need assets to get a loan). Most people take loan with Gold as a collateral assets Lot of people take loans to build a new house or to buy a house Ag loans need land as collateral (Banks will keep land registration original docs, and they don't get second loan) People in India are Debt averse (they will pay ASAP). Banks bad assets are -Loan's given to the politician, and companies backed by politician. My 2 cents. Take it with a grain of salt. Link to comment Share on other sites More sharing options...
investor-man Posted November 24, 2014 Share Posted November 24, 2014 Here is the direct link from BSE india JK Bank http://www.bseindia.com/corporates/shpperent.aspx?scripcd=532209&qtrid=83&CompName=JAMMU%20KASHMIR%20BANK%20LTD%20&QtrName=September%202014 South Indian Bank: http://www.bseindia.com/corporates/shpperent.aspx?scripcd=532218&qtrid=83&CompName=SOUTH%20INDIAN%20BANK%20LTD%20&QtrName=September%202014 My advise is don't rely on the comments made by Indian CA's or Non resident Indian's, and they will exaggerate everything by 10 folds. No body is disputing THE EVIDENCE OF corruption in India (corruption is there, but you still need assets to get a loan). Here are my thoughts on Indian Banking in general Banks won't lend 10 cents with out collateral assets (even with bribes you still need assets to get a loan). Most people take loan with Gold as a collateral assets Lot of people take loans to build a new house or to buy a house Ag loans need land as collateral (Banks will keep land registration original docs, and they don't get second loan) People in India are Debt averse (they will pay ASAP). Banks bad assets are -Loan's give to the politician, and companies backed by politician. My 2 cents. Take it with a grain of salt. My worry in investing in India is not so much the business as it is the numbers. It's the accountants I'm worried about, and the corruption happening there. I find the idea of following someone like Pabrai into India is attractive because he has a great track record. That said, he's famous for cloning people. I'm not sure who he's cloning here, if anyone - I think he's on his own here. Banks do seem like a good place to start investing in India, simply because of the protected nature they have in this world. I'm still seesawing on this one, though. Link to comment Share on other sites More sharing options...
MrB Posted November 24, 2014 Share Posted November 24, 2014 How about any local smart money invested in these banks. I don't recognize anyone on those lists. Anyone knows about some good local India investors invested in these banks? Link to comment Share on other sites More sharing options...
sampr01 Posted November 24, 2014 Share Posted November 24, 2014 Hi MrB I don't know for JK bank, but for South Indian Bank, he is cloning Renuka Ramnath (Multiples Pvt Equity), and Yusuffali Ali (Billionaire). Pabrai bought SB directly from Renuka's fund.Here is more info on http://www.multiplesequity.com/investment-style.htm ::) How about any local smart money invested in these banks. I don't recognize anyone on those lists. Anyone knows about some good local India investors invested in these banks? Link to comment Share on other sites More sharing options...
jgyetzer Posted November 28, 2014 Share Posted November 28, 2014 Would anyone know which brokerage services offer access to the India NSE and J&K Bank in particular? Link to comment Share on other sites More sharing options...
investor-man Posted November 28, 2014 Share Posted November 28, 2014 Would anyone know which brokerage services offer access to the India NSE and J&K Bank in particular? Take a look at this thread http://www.cornerofberkshireandfairfax.ca/forum/general-discussion/us-investor-buying-indian-equites/ Link to comment Share on other sites More sharing options...
seshnath Posted December 2, 2014 Share Posted December 2, 2014 I started buying on 24th September into JK Bank as a 5% position and now a 10% position. Looks like I have good company!!! ;D Link to comment Share on other sites More sharing options...
smathew Posted December 7, 2014 Share Posted December 7, 2014 http://www.jkbank.net/pdfs/PresentationsForAnalysts/CLSA%20India%20Forum%20-%20Gurgaon%20-%2014th%20Nov%202011.pdf Link to comment Share on other sites More sharing options...
Evolveus Posted December 18, 2014 Share Posted December 18, 2014 http://www.outlookbusiness.com/printarticle.aspx?292548 Link to comment Share on other sites More sharing options...
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