Development Corporation Bank a unique player in MSME segment: Avinnash Gorakssakar

In a chat with ET Now, Avinnash Gorakssakar, Head of Research, Mintdirect.com, shares his top investment idea. Excerpts:

ET Now: Give us your top investment idea.

Avinnash Gorakssakar: We have been recommending from the private bank space a small bank called Development Corporation Bank. In fact, this is a unique small player operating in the MSME segment.

More importantly, the bank has got a very good balance sheet, very strong NIMs and we have seen consecutive last two to three quarters very strong growth so despite the fact that it is a small player, we are positive on the bank.

Our sense is that, over the next say three to four quarters, one could definitely see good amount of balance sheet expansion plus improvement in the NIMs and clearly within the MSME space, the bank hopes to grow at least 30-40%. So probably in the next 12 months a price target of around 125-130.