Buy Allahabad Bank on dips: Unicon Investemnt Solutions

Gajendra Nagpal, CEO, Unicon Investemnt Solutions in a chat with ET Now gives his views on various stocks.

ET Now: What makes you bullish on Allahabad Bank? Looking at the total debt equity ratio v/s book value of Allahabad Bank, it is a small or a mid-cap PSU banking stock where the ratios are not very strong?

Gajendra Nagpal: The kind of sentiment in the market in the last few trading sessions makes one believe that PSU stocks may be out of fashion. But, Allahabad Bank has been able to maintain its net interest margin over 3%, which is fairly strong for a PSU bank.

Also, with the kind of work that the bank is doing, in next few years, it would be counted amongst the large-cap public sector banks. So, Allahabad Bank in that sense stands out.

Right now, there is a correction in the banking index and banking space has been facing some tough questions after Kingfisher crisis. But, it will sort out over a period of time. Not in current levels, maybe 3-4% down from current levels, it is a good entry point to get into Allahabad Bank.