Financial Daily from THE HINDU group of publications
Monday, Feb 16, 2004
Financial Daily from THE HINDU group of publications Monday, Feb 16, 2004 |
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Foreign Institutional Investors Money & Banking - Private Banks FIIs take fancy for old private banks — Goldman Sachs Investment leads the pack
N.S Vageesh
Chennai , Feb. 15 THAT foreign institutional investors are interested in private sector banks is old hat. What is new, however, is that they are not seeking out the usual suspects - HDFC Bank, ICICI Bank and UTI Bank - but stocks of old private sector banks such as Jammu & Kashmir Bank, Karur Vysya Bank and Karnataka Bank to whet their investment appetite. FII investment in these banks has gone up in the quarter ended December 2003. In particular, Goldman Sachs Investment (Mauritius) appears to have more than a passing interest in these old private banks. This FII has picked up a stake of more than 1 per cent in five old private sector banks - Karur Vysya, Karnataka Bank, Federal Bank, South Indian Bank and Jammu & Kashmir Bank. Old private sector banks tend to be small banks with strong regional presence. Of these banks, Jammu & Kashmir Bank has been the star with FII interest at about 13 per cent. Goldman Sachs (Mauritius) has also picked up stake in three new banks - Centurion, Global Trust Bank and Bank of Rajasthan. Incidentally, the financial health of these three new private banks is relatively inferior to most listed Indian banks. In the case of Global Trust Bank, it is possible that Goldman Sachs picked up the stake relinquished by International Finance Corporation of Washington. The FII interest in new private sector banks such as HDFC Bank, ICICI Bank, Kotak Mahindra and UTI Bank has also gone up in the past quarter. FII stake in these banks, in addition to Jammu and Kashmir and Centurion Bank, is now more than 10 per cent.
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