PSU management and P/e ratio…..story 2
Most people are generally under the impression that the Government of India (actually the party in power) misuses the psu money and that is bad.
True, well almost.
HOWEVER, please note that some advantages that the psu undertakings enjoy should not be ignored. For a very long time you could pay your advance tax ONLY in SBI. You had to open your ppf account only with SBI.
The army salary, army pensions are all with SBI. Imagine the amount of money lying unclaimed….
pravin
the money of large number of depositors lies unclaimed,yes -but why will the minority shareholder benefit?
subra
of course he DOES. the cost of funds do come down. In most psu issues I think the original shareholder has not done too badly. NHPC of course is an exception. I guess if u had been allotted the minimum in ALL PSU IPOs you would have beaten the Sensex.
However, the good ones like sbi, coal india, ntpc have given good returns – but some have lost wealth. Not sure how the psu index looks – assuming IPO buying.
bharat shah
prashant jain knows better so he invests in psu banks more rather than hdfc itself!
bharat shah
prashant jain knows better, he invests in sbi and other psu banks rather than hdfc bank itself!