Rakesh Jhunjhunwala is bullish on the banking sector and is optimistic on the prospects of Karur Vysya Bank & Federal Bank. These stocks constitutes about 7-8% of the overall portfolio of the Indian Warren Buffett.
See the appreciation which has happened to his portfolio courtesy Karur Vysya Bank where he invested Rs. 50 lakh in 1993 and it is worth Rs. 200 crore now. He is optimistic on Karur Vysya Bank due to its rrobust 18-20 per cent growth coupled with a good management which is providing a good dividend yield of about 4% to its shareholders.
Rakesh Jhunjhunwala does not feel safe while investing in public sector banks (PSU) and he has no exposure in PSU despite it being available at cheap valuations.
