(i) Allahabad Bank Ltd (Rs.53.20; intra-day high: Rs.53.60; Up: 3.20%; Book Value: Rs.192.83; 52-week L/H: Rs.39.40/Rs.108.25),
(ii) Punjab National Bank Ltd (Rs.76.20; intra-day high: Rs.77.20; Up: 3.25%; Book Value: Rs.192.06; 52-week L/H: Rs.69.25/Rs.180.55) and
(iii) State Bank of India Ltd (Rs.180.20; Intra-day high: Rs.180.55; Book Value: Rs.165.49; 52-week L/H: Rs.148.25/Rs.305.00), were up yesterday on Bargain Hunting.
"The (PNB) bank intentionally took much higher provisions for cleaning up of the balance sheet. Naturally they had to take provisions for the high NPAs as they had not accounted for the asset quality review in Q3 of the previous fiscal," Siddharth Purohit, senior equity research analyst -- banking, Angel Broking told IANS. "Going ahead certainly this kind of loss will not be there for Punjab National Bank Ltd; though asset quality has still not stabilised, the last part is done," he added.
Also, the SBI management believes that after the merger, its balance sheet will increase to Rs.37 lakh crore from Rs.28 lakh crore currently and SBI will get fixed assets worth Rs.4,000 crore from the books of its subsidiaries. The management expects its cost of funds to come down by 100 basis points within a year, as subsidiaries currently have high deposit rates.
|Photo: The Hindu|
The Punters are betting on some well known PSBs, on the premise that a revival in global growth and better monsoon rains in India will help cut bad loans and revive credit growth.