Friday, 5 May 2017

Internship 2017-18 (List)

Hi Everyone,

First of all thank you for evincing interest in the internship and sending in your applications.

Replying and acknowledging the individual mails was not possible. However, I have taken due care that none of the mails remain unattended in the bulk /spam folder. 

I carefully went through each application and short listed the names. From the short list, I picked a draw of 10 names which are :

  1. Vishal Prasad
  2. Shyam Sunder R
  3. Harsh Gupta
  4. Gummadi Jaya Chandra
  5. Sameer Sawant
  6. Vikas Kasturi
  7. Niyas CV
  8. Anubhav Bhambri
  9. Ankush Raghuvanshi
  10. Midhun James
Best wishes,

Saturday, 8 April 2017

Value Investing- Internships 2017-18

Hi Everyone,

I intend to provide internships to interested candidates in the field of value investing for the year 2017-18.

Please find details about the same here : link.


Ankur Jain

Friday, 17 March 2017

​​97 everyday and counting ?

A casual conversation with a PSU bank officer a few days back highlighted the problem that the PSU banks are staring in their face. It's not NPAs. NPAs is a known devil. The other piece which goes unnoticed is the human resources, or rather the absence of them. The bank officer mentioned that around 120-125 employees are retiring every month from his bank and it is becoming almost impossible to drive business or even to maintain business.

PSU Banks have a market share of 75% of the total deposits and around 75% of the total advances. They have a large market share of an industry which is expected to grow at a rate of 15-20% per annum.

I checked about the problem of human resources at the PSU Banks.

As per a question answered by the Government of India in Rajya Sabha in March 2015, the total number of employees in PSU banks as on 31.12.2014 were 851,308. In an answer to another question during March 2015 in the Rajya Sabha, the Government submitted that around 25% of the employees of banks are expected to retire by 2020. This means that around 213,000 employees would retire during the period of 6 years (CY 2015- CY 2020). This is an average of 35,471 employees retiring every year or 97 employees retiring everyday (including Sunday) till 2020. RBI has termed 2010-2020 as the decade of retirement for the PSU banks.

A large number of these would be people having experience in the critical areas of project assessment, appraisal. Also, this number does not include people who would resign and move over to private organizations. Sure, the banks will try to fill up the ranks quickly but it is easier said than done. And the new joinees would lack the experience required to write loans and recover the ones already lent.

In the light of such a cocktail (large NPAs, weak balance sheets and absence of experienced people), it is very likely that public sector banks will cede large slices of market share to private players which includes private banks, small finance banks, MFIs, NBFCs, payment banks etc.

Disclaimer : No investment recommendation.