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Oct 2, 2012

Quarterly Results season starts

With the closure of September quarter banks have already announced dates for declaration of quarterly results;

IndusInd Bank on October 10

HDFC Bank on October 12

Karnataka Bank on October 17

Banking Stocks which are trading at 52 week high on 1st October 2012

The following banking stocks are trading at 52 week high

ING Vysya Bank 415.50

IndusInd Bank 364.90

Kotak Mahindra Bank 651.80

Yes Bank 395.00

Dena Bank 109.50

Rakesh Jhunjhunwala's views on Banking Sector

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.

Honourable Finance Ministers views on RBI rate cut and Bank consolidation

Excerpts from interview with Rohini Singh and Hema Ramakrishnan (ET)

Q: Do you think the RBI should start cutting rates now?

A: That is a call that the Governor has to take. In our view, government and monetary authority must point in the same direction and walk in the same direction. As we take steps on the fiscal side, the RBI should take steps on the monetary side.

Q: Are you in favour of bank consolidation ?

A: The main task is to recapitalise our banks, make them more technology driven, push them into aggressive financial inclusion and make them lend more to the bottom of the pyramid. We would need large-sized banks and, if that can be achieved by consolidation, so be it. The policy is to grant more licences and if required amendments to the Banking Regulation Act.

New IBA Chairman

Mr. K.R.Kamath, CMD of Punjab National Bank has been choosen as Chairman of Indian Bank's Association (IBA) wef 1st October 2012.