BANKING SECTOR

As Banking Sector has slowed down due to IR reductions and restrictions by the CBSL , What is the best bank secured and minimum impact due to restrictions. Answer is NDB.

shihan 93 wrote:As Banking Sector has slowed down due to IR reductions and restrictions by the CBSL , What is the best bank secured and minimum impact due to restrictions. Answer is NDB.

Can you prove your answer? NDB will have to face highest impact.

Love Boy wrote:

shihan 93 wrote:As Banking Sector has slowed down due to IR reductions and restrictions by the CBSL , What is the best bank secured and minimum impact due to restrictions. Answer is NDB.

Can you prove your answer? NDB will have to face highest impact.

NO @LoveBoy, First lets take the loans they have, In this it clearly shows NDB and DFCC having best credit profiles that have the least impact due to CBSL restrictions, Also NDB has the best bad debt to bad loans ratio, Also I looked into present share holders, where I could still see DFCC having a foreign equity still, Also NDB's employees given share saver scheme @ Rs90 before their last rights issue. This is a big indication that NDB internal management having confidence. Thats why I emphasis that NDB is the best to invest of of the banking sector. Pls do ur own research before invest, tc

shihan 93 wrote:

Love Boy wrote:

shihan 93 wrote:As Banking Sector has slowed down due to IR reductions and restrictions by the CBSL , What is the best bank secured and minimum impact due to restrictions. Answer is NDB.

Can you prove your answer? NDB will have to face highest impact.

NO @LoveBoy, First lets take the loans they have, In this it clearly shows NDB and DFCC having best credit profiles that have the least impact due to CBSL restrictions, Also NDB has the best bad debt to bad loans ratio, Also I looked into present share holders, where I could still see DFCC having a foreign equity still, Also NDB's employees given share saver scheme @ Rs90 before their last rights issue. This is a big indication that NDB internal management having confidence. Thats why I emphasis that NDB is the best to invest of of the banking sector. Pls do ur own research before invest, tc

@ shihan 93, You haven't factored the primary dealerships held by banks in to your calculations. Even though banks lose money by interest rate cuts, Primary dealers usually make merry when the interest rates drop by trading government bonds in the secondary market. That it self is a massive profit for primary dealers. If you come to a conclusion about a bank's profit just by analyzing Interest based earnings, you are wrong. Just imagine the amount of daily trades all the banking institutes make in CSE.Almost 3 to 4 banks are among the highest traded stocks in CSE on a daily basis. You think all the buyers don't know that the IR cuts affect banks earnings??

Another thing is that Debt Moratorium actually works in the favor of banks rather than the debtors because debtors will have to pay an additional interest based on the remaining capital once the moratorium period is over. Having considered all these, all banks stand to gain in near future and hence the justification for the daily high volume trading in Banks specially banks like COMB, SAMP, UBC and PABC which are all certified primary dealers.

dayandacool wrote:

shihan 93 wrote:

Love Boy wrote:

shihan 93 wrote:As Banking Sector has slowed down due to IR reductions and restrictions by the CBSL , What is the best bank secured and minimum impact due to restrictions. Answer is NDB.

Can you prove your answer? NDB will have to face highest impact.

NO @LoveBoy, First lets take the loans they have, In this it clearly shows NDB and DFCC having best credit profiles that have the least impact due to CBSL restrictions, Also NDB has the best bad debt to bad loans ratio, Also I looked into present share holders, where I could still see DFCC having a foreign equity still, Also NDB's employees given share saver scheme @ Rs90 before their last rights issue. This is a big indication that NDB internal management having confidence. Thats why I emphasis that NDB is the best to invest of of the banking sector. Pls do ur own research before invest, tc

@ shihan 93, You haven't factored the primary dealerships held by banks in to your calculations. Even though banks lose money by interest rate cuts, Primary dealers usually make merry when the interest rates drop by trading government bonds in the secondary market. That it self is a massive profit for primary dealers. If you come to a conclusion about a bank's profit just by analyzing Interest based earnings, you are wrong. Just imagine the amount of daily trades all the banking institutes make in CSE.Almost 3 to 4 banks are among the highest traded stocks in CSE on a daily basis. You think all the buyers don't know that the IR cuts affect banks earnings??

Another thing is that Debt Moratorium actually works in the favor of banks rather than the debtors because debtors will have to pay an additional interest based on the remaining capital once the moratorium period is over. Having considered all these, all banks stand to gain in near future and hence the justification for the daily high volume trading in Banks specially banks like COMB, SAMP, UBC and PABC which are all certified primary dealers.

Thanks for your Info. It means,we have to face another hit when rate tries to pick up near future. This will be double negative hit to the banks and finance sector. After,Rates try to rise.

"Banks specially banks like COMB, SAMP, UBC and PABC which are all certified primary dealers"

PABC primary dealership is currently suspended.

ronstyn53 wrote:"Banks specially banks like COMB, SAMP, UBC and PABC which are all certified primary dealers"

PABC primary dealership is currently suspended.

That is true. I just wanted to emphasize the fact that it's not all too bad for banks when CBSL announce rate cuts.

Love Boy wrote:

dayandacool wrote:

shihan 93 wrote:

Love Boy wrote:

shihan 93 wrote:As Banking Sector has slowed down due to IR reductions and restrictions by the CBSL , What is the best bank secured and minimum impact due to restrictions. Answer is NDB.

Can you prove your answer? NDB will have to face highest impact.

NO @LoveBoy, First lets take the loans they have, In this it clearly shows NDB and DFCC having best credit profiles that have the least impact due to CBSL restrictions, Also NDB has the best bad debt to bad loans ratio, Also I looked into present share holders, where I could still see DFCC having a foreign equity still, Also NDB's employees given share saver scheme @ Rs90 before their last rights issue. This is a big indication that NDB internal management having confidence. Thats why I emphasis that NDB is the best to invest of of the banking sector. Pls do ur own research before invest, tc

@ shihan 93, You haven't factored the primary dealerships held by banks in to your calculations. Even though banks lose money by interest rate cuts, Primary dealers usually make merry when the interest rates drop by trading government bonds in the secondary market. That it self is a massive profit for primary dealers. If you come to a conclusion about a bank's profit just by analyzing Interest based earnings, you are wrong. Just imagine the amount of daily trades all the banking institutes make in CSE.Almost 3 to 4 banks are among the highest traded stocks in CSE on a daily basis. You think all the buyers don't know that the IR cuts affect banks earnings??

Another thing is that Debt Moratorium actually works in the favor of banks rather than the debtors because debtors will have to pay an additional interest based on the remaining capital once the moratorium period is over. Having considered all these, all banks stand to gain in near future and hence the justification for the daily high volume trading in Banks specially banks like COMB, SAMP, UBC and PABC which are all certified primary dealers.

Thanks for your Info. It means,we have to face another hit when rate tries to pick up near future. This will be double negative hit to the banks and finance sector. After,Rates try to rise.

@love boy impact of interest rate cuts surely hurt banks. There is no doubt about that. But it's not the only way a bank generates a profit even though that's the primary source. Therefore while rate reductions having a negative impact on earnings, there are other methods that mitigates those negative impacts. If you have read the CBSL August directive, you will know that the low interest regime is going to continue for the rest of the financial year and even have few more rate cuts before CBSL decides to increase interest rates which is not going to happen in near future. What I wanted to say initially was that point that someone here suggested the best bank to buy at present is NDB based on impact of interest rate regime alone which may not be true. While I have nothing against NDB, all I wanted to post was when determining a banks earnings there are other aspects as well.

dayandacool wrote:

Love Boy wrote:

dayandacool wrote:

shihan 93 wrote:

Love Boy wrote:

shihan 93 wrote:As Banking Sector has slowed down due to IR reductions and restrictions by the CBSL , What is the best bank secured and minimum impact due to restrictions. Answer is NDB.

Can you prove your answer? NDB will have to face highest impact.

NO @LoveBoy, First lets take the loans they have, In this it clearly shows NDB and DFCC having best credit profiles that have the least impact due to CBSL restrictions, Also NDB has the best bad debt to bad loans ratio, Also I looked into present share holders, where I could still see DFCC having a foreign equity still, Also NDB's employees given share saver scheme @ Rs90 before their last rights issue. This is a big indication that NDB internal management having confidence. Thats why I emphasis that NDB is the best to invest of of the banking sector. Pls do ur own research before invest, tc

@ shihan 93, You haven't factored the primary dealerships held by banks in to your calculations. Even though banks lose money by interest rate cuts, Primary dealers usually make merry when the interest rates drop by trading government bonds in the secondary market. That it self is a massive profit for primary dealers. If you come to a conclusion about a bank's profit just by analyzing Interest based earnings, you are wrong. Just imagine the amount of daily trades all the banking institutes make in CSE.Almost 3 to 4 banks are among the highest traded stocks in CSE on a daily basis. You think all the buyers don't know that the IR cuts affect banks earnings??

Another thing is that Debt Moratorium actually works in the favor of banks rather than the debtors because debtors will have to pay an additional interest based on the remaining capital once the moratorium period is over. Having considered all these, all banks stand to gain in near future and hence the justification for the daily high volume trading in Banks specially banks like COMB, SAMP, UBC and PABC which are all certified primary dealers.

Thanks for your Info. It means,we have to face another hit when rate tries to pick up near future. This will be double negative hit to the banks and finance sector. After,Rates try to rise.

@love boy impact of interest rate cuts surely hurt banks. There is no doubt about that. But it's not the only way a bank generates a profit even though that's the primary source. Therefore while rate reductions having a negative impact on earnings, there are other methods that mitigates those negative impacts. If you have read the CBSL August directive, you will know that the low interest regime is going to continue for the rest of the financial year and even have few more rate cuts before CBSL decides to increase interest rates which is not going to happen in near future. What I wanted to say initially was that point that someone here suggested the best bank to buy at present is NDB based on impact of interest rate regime alone which may not be true. While I have nothing against NDB, all I wanted to post was when determining a banks earnings there are other aspects as well.

Thank You very much. Can you please explain the impact of banks ?

Case 1:

*If rates pick recent future.

Case 2:

*If rates remain the same.

Service economy to production economy means banks need to work harder.

shihan 93 wrote:"@love boy impact of interest rate cuts surely hurt banks. There is no doubt about that. But it's not the only way a bank generates a profit even though that's the primary source. Therefore while rate reductions having a negative impact on earnings, there are other methods that mitigates those negative impacts. If you have read the CBSL August directive, you will know that the low interest regime is going to continue for the rest of the financial year and even have few more rate cuts before CBSL decides to increase interest rates which is not going to happen in near future. What I wanted to say initially was that point that someone here suggested the best bank to buy at present is NDB based on impact of interest rate regime alone which may not be true. While I have nothing against NDB, all I wanted to post was when determining a banks earnings there are other aspects as well."


@dayandacool I am not saying NDB rates is least impacted due to  CBSL rates cut, It is due to it has least exposure to credit cards, OD and pawning, All banks are in a decline after CBSL mentioned this, Last month there wasn't any rate cut. rate cut happened prior.  



Can you please explain the impact of banks ?

Case 1:

*If rates pick recent future. This is highly improbable as government and CBSL has given clear indications that they will try reducing even more.If happens its better for Banks in general

Case 2:

*If rates remain the same. As most people will invest more on equity and business rather than opening FDs its better for investment banking sector (Pls check most prominent investment bank growth recently) 



** We all saw first capital showing huge growth, As l know NDB Wealth has a bigger investments in debt and investment banking, Check who owns NDBWealth. I think we should give time and see who is right. Any way tc, invest wisely.

I mean, Not the share prices,but the Banks EPS.

Banking sector have gained a momentum today. Specially COMB / SAMP / HNB X and DFCC.
Are we going to experience a Banking Rally again or is this just because of the vaccine news ??
Need comments from our experts please.

CPGOMEZ71 wrote:Banking sector have gained a momentum today. Specially COMB / SAMP / HNB X and DFCC.
Are we going to experience a Banking Rally again or is this just because of the vaccine news ??
Need comments from our experts please.

Yesterday also big head of the government said people should be allowed interest concessions, cuts, extention etc. Still no way it seems. Government handle Interest very patiently. Import also same.

By the way, banks were advised to give lower rate loans to SME. Lots of people got it. Even in leading private banks did so. Now people have difficulty to repay in short term due to second Covid19 wave. There will be loan collection issues.

Expecting positive quarterly reports from major banks.
Banks are operated mainly on line.
Banks do functioning during lockdown through on line facilities.
Large amount of loans were provided to professionals with low interest rates.

CPGOMEZ71 wrote:Banking sector have gained a momentum today. Specially COMB / SAMP / HNB X and DFCC.
Are we going to experience a Banking Rally again or is this just because of the vaccine news ??
Need comments from our experts please.

These are the very good banks and in very near future they will show their profits, and there goes the rally then.

Bank shares are very attractive at current prices, I bought DFCC yesterday. Bought Sampath, HNB, COMB N &X.
quite possible to appreciate significantly with their Q3 results. Still not late to enter to these share if you have cash in hnad.

shan31 wrote:Bank shares are very attractive at current prices, I bought DFCC yesterday. Bought Sampath, HNB, COMB N &X.
quite possible to appreciate significantly with their Q3 results. Still not late to enter to these share if you have cash in hnad.

Good decision you made and  bought DFCC. I am under my real name, take my word this has a great potential to appreciate the price. Everybody must make a profit this is my intention.

judecroos wrote:

shan31 wrote:Bank shares are very attractive at current prices, I bought DFCC yesterday. Bought Sampath, HNB, COMB N &X.
quite possible to appreciate significantly with their Q3 results. Still not late to enter to these share if you have cash in hnad.

Good decision you made and  bought DFCC. I am under my real name, take my word this has a great potential to appreciate the price. Everybody must make a profit this is my intention.

My intention also same , all of us must make profit. i bought 50,000 DFCC 63-64 as i am quite confident of this share.

shan31 wrote:

judecroos wrote:

shan31 wrote:Bank shares are very attractive at current prices, I bought DFCC yesterday. Bought Sampath, HNB, COMB N &X.
quite possible to appreciate significantly with their Q3 results. Still not late to enter to these share if you have cash in hnad.

Good decision you made and  bought DFCC. I am under my real name, take my word this has a great potential to appreciate the price. Everybody must make a profit this is my intention.

My intention also same , all of us must make profit. i bought 50,000 DFCC 63-64 as i am quite confident of this share.

https://www.youtube.com/watch?v=REMdevPS0Eo

කොවිඩ් ණය සහන තවත් මාස 06කින් දීර්ඝ කෙරේකොවිඩ් ණය සහන තවත් මාස 06කින් දීර්ඝ කෙරේ

November, 10, 2020

hyyooo  Bank shares..

Same  panic selling of Banks tomorrow???

So more investors gonna pop up in CSE.. trading going to be fun...

Buy Banks and Strong Finance Companies and keep for 3 Months.
Minimum 30%.
SAMP, COMB, DFCC, PABC, HNB, LFIN, VFIN, PLC, CFIN

wealth123 wrote:Buy Banks and Strong Finance Companies and keep for 3 Months.
Minimum 30%.
SAMP, COMB, DFCC, PABC, HNB, LFIN, VFIN, PLC, CFIN

There is a possible risk of day after budget speech day. Yesterday CB circular gave signal that economic financial package is to be given aiming at Covid19 season two. If so couple of days after budget speech you may observe huge drop in bank and financial sector shares. Especially if panic investors react like how they reacted on Pfizer companies priliminary news regarding their vaccine even yet not finished full phases of testing.

Does anyone have history of SEYB.X Cash & Script dividends 
If have kindly let me know since 2011 - 2020 

i think every good investors are collecting bank stocks silently these days

Dfcc is the best out of all.

Winner123 wrote:Dfcc is the best out of all.

Agreed.but price is not moving.

Yes its moving slowly.