Two Flat Tyres simultaneously happened this morning ! ~ But can Two Mahindra Banks happen !?

Two Flat Tyres simultaneously happened this morning ! ~ But can Two Mahindra Banks happen !? 

7.25 am this lovely Tuesday morning I was challenged by my car !

” Hello, Good Morning” she greeted cheerfully ….“Me no Go! for me got two flats !”  ~ I can swear she was grinning from tyre to tyre ! ~ Lazy Car ~ probably a hangover from the long journeys yesterday to Goregaon that my son subjected her to !

….but  Two Mahindra Banks ! ? Nah ! ~ cannot happen !  ~ we already got Kotak Mahindra Bank in existence the last ten years

In 1985 Uday Kotak and Anand Mahindra joined hands to set up the flagship  Kotak Mahindra Finance Ltd ~ I distinctly remember meeting Uday at his D N Road Family Office in 1988 on my return from overseas to play for his Cricket Club in the Sunday Kanga League ~ I would have ,had it not rained the first five Sundays of that Kanga Season and if I was not on my Honeymoon for the next five Sundays ! ~A year later I bumped into him at Nariman Point ~ he was scouting for Property for the JV and Nariman Point was the coveted business address in those days. In February 2003, Kotak Mahindra Finance Ltd was given the license to carry on banking business by the Reserve Bank of India (RBI). This approval created banking history since Kotak Mahindra Finance Ltd became the first non-banking finance company in India to convert itself in to a bank as Kotak Mahindra Bank Ltd. ~ Last count it boasted  over 357 branches and 866 ATMs spread all over India

Now after Ten Years ,RBI is again set to invite applications for new banking licenses from the private sector and listed  Mahindra & Mahindra Financial Services Ltd is being viewed as a strong contender

Just wondering aloud ! ~ if Mahindra & Mahindra Financial Services does apply,will RBI view it negatively as it already gave a licence in 2003 to a NBFC that bore the  Mahindra nomenclature,namely Kotak Mahindra Finance Ltd ~ Or will the contention be that Kotak Mahindra and Mahindra & Mahindra are two seperate business groups !

Such a situation may just tilt the balance in favour of L & T Finance,Tata Group,Bajaj Group or Sriram Group ~ I don’t see many new banking licences being issued ~  3 or 4 max !

6 thoughts on “Two Flat Tyres simultaneously happened this morning ! ~ But can Two Mahindra Banks happen !?

  1. Sir,

    Shriram trans is only a front org for someone very powerful…..one thing is certain that it will surely get it….but the question is shid it get it?

    holding IFCI currently from Rs 30(average price) if you have any view pls infrom

    Regards

    1. Anurag,had posted a few IFCI blog in end August 2012 and September 2012 stating that after the full Loan to Equity Conversion at par by Govt the New Equity zooms to Rs 1661 crs and the Book Value tumbles to Rs 31 ~ PAT levels have been @ Rs 650 crs to Rs 700 crs ~ However there are NPA issues on some big loans that have not been fully provided for ~ Government has finally seen sense and reconstituted the Board and may revive disinvestment exercise ~ Share Price has moved up to Rs 38/40 in anticipation that new Board will mean business and bring in some improvement in performance ~ I yet do not see profitability moving up very strongly in the next two to three years ~ I’m monitoring developments and reserve a recommendation call to buy for somewhere down the line if my level of conviction increases and stabilises at a higher level than today ~ However For those who hold it like you do,I would advise to continue holding to see the government gameplan play out in it’s entirety

    1. Hi Parth,

      If you read the RBI draft guidelines there is a lot of grey subjective area of corporate governance and past record of it and standing of promoters that RBI will look into ~ my sense is that ,given the recent controversies,Reliance Capital may find it difficult to get RBI Approval for banking licence

  2. Thank you sir for precious reply.Please do post about future of Rel broadcast and Rel mediaworks.how they are investing in dreams-works,do SEBI have information about foreign investments ? means if they are using black money

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