INSIGHTS OF THE INDIAN ECONOMY

  STATE BANK OF INDIA: WILL THE ELEPHANT DANCE? State Bank of India having largest network of 22000 branches is now showing signs of remarkable performance in future and in coming decade the valuation should increase multifold. Recently SBI chairmen using a tag line saying elephants can also dance. Is the State Bank of India ready to dance now? It seems that SBI have gathered the required muscles for any elephant to dance. For dancing, the muscle has to be very strong so that is something which they are focusing on for quite some time and now it looks like that the largest government owned bank is in a position to dance. For the first time the intrinsic value of the  State Bank of India  is being acknowledged by the market. Let me describe the key positive factors which explain the reason why it looks like to be a real value creator of future.   It is expected that the GDP growth in year FY21-22 would be around 11%. Normally we have seen that the credit growth i...

  Vehicle Scrappage policy:  A Master Stroke from Government! The much-awaited vehicle  scrappage policy  is awaiting final clearance from the Union Cabinet and would focus on eliminating the fleet of old polluting commercial vehicles as well as private vehicles plying on the country's roads. Once the policy is approved, India could emerge as a hub for automobile manufacturing as key raw material available from scrapping like steel, aluminum and plastic are bound to be recycled, bringing down automobile prices by 20-30 per cent.   A well-defined vehicle scrappage policy in India can help create an industry of its own with a business opportunity of $6 billion (Rs 43,000 crore) a year, say automobile sector executives and experts. An HDFC Bank study has estimated the market for vehicle scrappage and recycling at $6 billion. According to it, if the policy is defined well, 9 million vehicles could go off roads by fiscal 2021 and 28 million by 2025, lar...