They now need to issue fresh scrip to maintain their Capital ratio which is down by 5%. They would prefer to do it thru a convertible bond which means existing shareholders could be affected. The market senses that.
The CEO may need to be changed as they are in bed with the Govt and their cronies.. IBN was a good Bank gone sour playing Yes Sir with the Authorities.
Asian Steel Mills only customers are Europe and the States. They are stepping up their dumping at below cost.
The workers in Europe are now protesting in Brussels . The U.S Industry should do the same..
Check out these 2 Pvt sector Banks and compare their performance.
The Mgmt of the 2 Banks is different. The Mgmt at IBN continue to suffer huge losses. These are loans to Got sponsored clients who are default professionals. The Mgmt at HDB are professionals with a very strict code of conduct.
You may well ask why. The answer is that the Govt keeps promising them (IBN) National awards in their Make in India campaign which is now languishing.
Wall St. is laughing. Mr M with his big ego got himself snared by Wall St. There is no escape now. They can issue more shares but it wont dent the trend.
The best solution is to liquidate the assets now in a planned way. The Book value could be below 40c due to clean up litigation.
Check your posts . You have been persistent in this rant for over 6 mths while IBN continues to tank..
On the other hand check out when you were warned of the impending decline due to bad loans and inept Management .
Was -ve at $10.20. Now hoping for a low at $5.20 by April when another round of bad loans surfaces. Nepotism and corruption are intrinsic to the Banking sytems in the East.
Don't rush. More bad loans expected if monsoon is week. The P/E is way too high for the risk.
A correction of 20% from current levels is your downside risk for the next 4 mths. The upside is less than 5%.
Lot more pain. The P?E is way too high for the risk. The CEO & her Cronies should be turfed out. They keep giving loans to party sponsored friends in return for promises of National awards.
Look at HDB. They have kept to their fundamentals and are prospering.