In our last column, we discussed how investing in companies with “wide moats” gives us the best opportunity to grow our money. In this column, let us see some household brands that we all know and how we can benefit by investing in these companies.
As we are talking about money, let us look around and see some of the most powerful brands around us in the banking industry. On your ride or walk from your house to the school and back, you are likely to come across branches or ATM machines of a number of banks. Can you recall a few of these?
Different sectors
ICICI Bank, State Bank of India, Standard Chartered Bank and so on are some popular banks. Within the banking industry, there are the following categories — foreign banks like Citi Bank, Standard Chartered Bank, HSBC and so on. There are also Indian or domestic banks like State Bank of India, Canara Bank, and the like. These banks are majority-owned by the government and are called public sector banks. Apart from these two categories, we also have private sector banks which are not owned by the government. They are owned by people like you and me. Some of the more well-known private sector banks are ICICI Bank, HDFC Bank, Axis Bank. Apart from this, there are a lot of new private sector banks like Yes Bank, Kotak Bank and so on which got their banking license over the last few years.
When we look around, it is easy to notice that private sector banks are more customer-friendly and responsive compared to public sector banks. They are also some of the fastest growing businesses in the country.
Young World Money-Wizards Quiz # 33: Which is India’s first Private Sector Bank?
If you know the answer, email it to youngworld@money-wizards.com.The first five correct answers who also like our facebook page within seven days will each be awarded flipkart e-vouchers worth Rs. 250. The results and the answers will be published at www.money-wizards.com.
About Money-Wizards: A company in financial literacy and money education. They conduct workshops and after school classes on money education for school children. If you want Money Wizards programmes in your school or neighbourhood, write to Info@Money-Wizards.com
