Excerpts from conversation with Punita Kumar Sinha on ET Now;
Q: In the banking sector, which is also indirectly like as domestic consumption story, I notice you have only one bank, Karur Vysya Bank.
A: No, I also have Federal Bank. But in Karur Vysya Bank, maybe, I think , I had invested Rs.50 lakh in 1993, now I think it is Rs.200 crore. I see now it is growing at 18-20%. It has a good management, is rewarding shareholders, has a good yield. I think Rs.400 is the price and Rs.16 is the dividend. So four rupees, a four percent yield. I don't trust the public sector banks. And the second thing is I don't want to invest less than Rs.50-Rs.100 crore in a scrip. firstlly, I don't have that kind of money to invest. Even if I have the money, the liquidity is not there. So, it is difficult to build positions.
Q: So, you have liquidity constraints and you don't like PSUs. But Federal Bank you like as well.
A: Yes. I have substantial investments. Banking will be 7-8% of my portolio.
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