The big story this morning remains the latest around ICICI Bank. The CBI has launched a preliminary inquiry into the Videocon loan case.
Ajay Srivastava of Dimensions Corporate Finance Services said that it’s going to be positive for the two banks because we might see the end of a questioned leadership at these two banks.
He further said that ICICI Bank is trading at rock bottom valuations currently.
“My belief is if there is a change and clean the leadership, I think that is very important because how could the bank Chairman give a clean chit when the inquiry is still on. The government hasnot cleaned up, the CBI hasn’t said this as a clean chit but the Chairman has said that it’s a clean chit. That is not the way banks work,” said Srivastava.
Sanjiv Bhasin of IIFL said that crony capitalism is the elephant in the room and change of leadership will surely help these stocks.
“On the stock side you have seen the Bank Nifty terribly underperform and this maybe the bottoming out process which is going to give investors a huge opportunity to buy some of the corporate lenders because on the macro side we think much more tailwinds are there rather than headwinds,” he said