Buy Central Bank Ltd above Rs.104

This stock has been recommended by me in several earlier occasions. Now it is time to recommend again. Central bank of India is one of 18 Public Sector banks in India to get recapitalized from the government over the next few months. The infusion of funds will improve the financial health of the bank, as its capital adequacy ratio (CAR) will be raised more than desired level of 12%. Also, any equity capital restructuring would lead to an improvement in the bank's credit rating and also facilitate the adoption of Basel II norms.