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ACCUMULATE PUNJAB and SIND BANK

 Punjab & Sind Bank




Company profile:

This PSB bank last quarter result soars by 5 times. There is no good time is going on for psu banks but after this quarter results, few good psu banks did very well because market was expecting poor results from psu bank but banks results has given surprise to the investors as well to the traders. Punjab & sindh bank assest quality is not too bad as compared with its peers. I am expecting good result trend from this bank in coming few months too. There is no any question that all psu banks have higher NPA’s but once the economy will be on the right track then the performance of the psu banks will also improve. Companies are unable to pay EMI’s on their loans due to stress on the economy. The govt is doing best to solve this problem. NPA’s problem is not with this bank only, if we will check the data then every bank has NPA’s. Punjab & sind bank is small state owned bank. The agriculture sector & Real estate sector will perform well in coming days. One the performance of the infrastructure sector will be improved thn the PSB performance will also improve. Moreover, The shareholding of this bank is in the hand of Govt which gives comfort label to the shareholders. Bank is also offering some dividend which is also investor friendly.

In nutshell, we can say that this small psu bank may out perform in the coming years but this is only for the investors. Rest all traders may build their trading positions as per the comfort levels. I will say that it is stock for long term investors only.

The company share price is trading at average valuation. The demand for the loan will increase. The growth story of the India is good. Especially in the banking  sector. The modernization in India will give better opportunities to companies in their expansion plans. The govt has also focus on modern infrastructure of India. The banking sector will be more in focus in India for coming many years because India is a developing country and improvement in the housing sector, road infrastructure is in demand. The bank having strong loan book and strong management, It will win the race. the strong management know how reduce the NPA’ and how to improve the loan book of the company.

The another story is also intact with state owned bank that Govt may do stake sale in these bank. It may happen in coming years then we may see value unlocking of this kind of state owned psu banks. We may see some sluggish price movement in the bank stock price in coming few weeks but positive  news may take this bank stock price up to the higher levels. Please try to book profit on higher levels

Disclaimer: 

It is my personal view on this bank. I have small number of shares of this bank & I will hold it for medium term 6 to 10 months for good returns. Before making any investment please do your own research.

 

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