In view of Rs 12,700 crore scam at the Brady House branch of Punjab National Bank, and other issues cropping up at the public sector banks (PSBs) in the last few weeks or such, Kotak MF holds a circumspect view of the public sector lenders.
In view of Rs 12,700 crore scam at the Brady House branch of Punjab National Bank, and other issues cropping up at the public sector banks (PSBs) in the last few weeks or such, Kotak MF has said that it holds a circumspect view of the public sector lenders. “We continue to remain circumspect of the PSU banks as we see more issues cropping up,” Kotak MF told ET Now. Even though private sector banks are better placed in comparison to their public sector peers, Kotak MF expects their valuations to remain elevated after recent turmoil witnessed in PSBs. The year 2018 shall be very different from the last year as one has to be good stock picker to make money this year amid volatility existing at present, Anshul Saigal of Kotak MF had told CNBC TV18 last month. A good investor will be choosy and more diligent with the stocks he wants to park money in, he had said.
Kotak Mutual Fund continues to remain constructive on retail private IT banks. After Donald Trump implemented his decision to raise tariffs on steel and aluminium a few days back, Kotak MF expects that a trade war will be triggered as a result. “US has triggered a trade war with its protectionist stance,” told Kotak MF to ET Now. The latest revision in the H-1B visa norms shall raise the cost of doing business for the Indian information technology companies in the US, Kotak MF said.
On 14 February, Punjab National Bank had informed the stock exchanges in the midnight that a Rs 11,000 crore scam has occurred at its Brady House branch in Mumbai. The bank fraud amount later inflated to Rs 12,700 crore. The bank later filed complained that a few of its employees colluded with the companies of the billionaire diamond merchant Nirav Modi to issue fake Letters of Undertaking (LoUs) to a few branches of Indian banks and raised credit from them. As a result government launched investigation into the entire matter. Till now, Enforcement Directorate (ED) and Central Bureau of Investigation (CBI) has conducted various raids at the companies associated with Nirav Modi and his uncle Mehul Choksi, the other co-accused in the case.