A taciturn man in a black SUV

A taciturn man in a black SUV started buying up tracts of arid agricultural land around this small town in the western Indian state of Rajasthan in 2009.

He would sit in the parking lot outside the one-story concrete building that houses the land office and dole out cash for sellers from the back seat, according to real-estate brokers and a local government land official.

The buyer represented by the man in the SUV, according to state land records, was Robert Vadra, a member of India’s powerful Nehru-Gandhi political clan, whose Congress party leads the country today and has for much of its more-than-66-year post-colonial history.

Soon after he began buying, the federal government announced plans to promote large-scale solar-energy production, a land-intensive project for which the area was well-suited. He continued buying land, and in 2011 the state, too, announced solar incentives. The value of the land Mr. Vadra bought soared sixfold within three years, a state record of land transactions shows.-from WSJ

True Confidence in Trading

When people wax poetic about their conviction in trades, my emotional reaction is:  Whatever.  A trade is a bet at the poker table.  Some bets will work, some won’t; some you’ll size up, some you’ll fold.  Whatever.  Over time, if you play the odds, you’ll do OK.  Beyond that, it doesn’t make a lot of sense to beat the chest and invite overconfidence bias to replace normal confidence.

Every forecast of a statistical model can be wrong.  Every trading judgment is fallible.  If you have a 50% hit rate on your trades and you trade once a day, on average you’re going to have an occasion in which you lose every day for a week during a trading year.  That doesn’t mean you’re in a slump; it doesn’t mean you should change what you do.  It’s going to happen and you can mentally prepare yourself–and size yourself in such a way that five consecutive losing days won’t take you out of the game.

The goal is not to eliminate losses–that would require omniscience.  Rather, the goal is to  anticipate losses so that you’re never surprised, never overwhelmed, never thrown onto the back foot.  True confidence comes, not from believing that you must be right, but from knowing that you can survive and even thrive if you’re dead wrong.-from TraderFeed

Ratnakar Bank raises Rs.328 Crores from investors

(Disclosure:I am market making in Ratnakar Bank)

RBL Bank, formerly known as Ratnakar Bank, today said it has raised Rs 328 crore from a group of global investors.

Besides the capital injection by institutional investors, the private lender may hit the market with public offering for shares in 9-12 months, said Rajeev Ahuja, Head of Strategy at RBL Bank.

The capital infusion was led by CDC Group and Asia Capital and Advisors. The bank’s existing investors, including International Finance Corporation (IFC), private sector funding arm of World bank, and Gaja Capital, also participated in this round. This is the third time the private lender has raised money in the last three years.

At present, the Bank has a total business size of over Rs. 21,000 crore and offers its services to over half a million customers. Ahuja said bank has grown business – deposits and advances – by over 40% in 2013-14 and expects to maintain same pace in 2014-15.-from Business Standard

Ratnakar Bank mulls 1,000 Crore IPO this fiscal

(Disclosure:I am market making in Ratnakar Bank)

Kolhapur-headquartered Ratnakar Bank has drawn up plans to raise about ₹1,000 crore through an initial public offer in the current financial year.

According to Vishwavir Ahuja, MD and CEO, his bank has reached a tipping point, in terms of balance sheet size, profitability and number of branches, with all three parameters seeing robust growth in the last four years.

₹18,000-cr balance sheet

Ahuja said Ratnakar Bank is likely to end FY14 with a balance sheet size of ₹18,000 crore against ₹2,300 crore in July 2010, when the new management took charge.

Further, its profit is expected to be close to the three-digits mark in FY14 against ₹19 crore in 2010-11.

In FY13, the bank reported a net profit of ₹92 crore (₹66 crore in the year-ago period) on a balance sheet size of ₹13,000 crore (₹7,200 crore).

From about 50 branches, predominantly concentrated in Maharashtra and Karnataka, in 2010, the 71-year-old bank, which has been re-branded as RBL Bank, now has 175 branches spread across 12 States.

Pointing out that it has achieved all transformation goals, in terms of balance sheet size, profitability, geographical expansion, technology infrastructure, governance and capital, the new management set out to achieve four years ago, Ahuja said the bank has reached a tipping point whereby the next round of capital raising via an IPO will set the stage for the next three years of growth.

Ahuja said, “We might do it (IPO) in this calendar year or latest in the fourth quarter of this financial year.”

Receives ₹167-cr investment

On Wednesday, the bank received investment amounting to $28 million (₹167 crore) from UK-based CDC Group. In the process, CDC picked up 4.8 per cent stake in the bank.

“The capital will be enough for this year,” said Ahuja.

In the last three years, the bank received investments aggregating ₹1,470 crore in three tranches. Shareholders who invested in the bank include HDFC, Norwest Venture Partners, Cartica Capital, International Finance Corporation, Faering Capital and Gaja Capital Partners.

Ahuja said the bank has managed to raise capital as and when the capital adequacy ratio (CAR) has fallen below 14 per cent. Post the CDC investment, the bank’s CAR has returned to 16-17 per cent.-from BusinessLine