Bank Of Baroda – The 2nd Best!

Bank Of Baroda – The 2nd Best! post thumbnail image

Yes , the second best ! ….who’s the first one ? Obviously my favourite SBI !

 

 

Recommendation!

Stock  : Bank Of Baroda

Buy Price : 131-135   /  Target : 240 – 270

Time Frame : 12 months to 18 months.

Indian markets have seen a lot of correction in the banking space , specially the PSU segment has taken the beating because of the government and Central bank’s move to clear the NPA .

The Bank declared by far the largest loss for a quarter to the tune of Rs.3342 crores ! . This was an aggressive move by the bank in order to remove the NPA’s from the balance sheet! . Further the Bank also declared that it will not look for capital infusion from govt and will try and re organise the bank’s policies and procedures in order to gain profit from bank’s operations and sale of non core assets!

We are positive on SBI and BoB as far as PSU banks are considered , but we dont expect anything to turn around overnight . PSU banks are sensitive to internal as well as external factors and will take time to heal their wound caused by NPAs!

 

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