Suhas

ICICI Bank: Boring Business, Compelling Valuation

I have been watching this bank for long but have never owned. I feel very risky as they are exposed to huge commercial loans and are levered them selves a lot. I do not see growth so rapid in future which peaked in 2007. As the credit evaluation in India is not as that of here I see defaults will definitely increase. One example to quote is that one of my friend was saying that he heard that one of the young graduate in India took appointment letter to ICICI bank and came out with a loan to buy 42 inch flat screen TV. That aggressive they are. This guy is not even resumed working and already has a loan from ICICI bank.
The author has put the book as 1.3 X to wonder why is that the case.

In yesterdays notes ICICI bank came up with Indian government backing up that they are well capitalized. I see some thing fishy, other wise why they want the Indian govt want to back them up.

To say that I do not have any relationship to ICICI bank not do I own any stock.