Like IOB in midcap PSU banking space: Satish Betadpu
Indian Overseas Bank is one of the cheaper plays in the midcap PSU banking space.
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| Satish Betadpur, CFA, Global Research Director, Independent International Investment Research PLC, in a chat with ET Now talks about IOB.
Why do you like IOB?
One of the stock stock picks for the day is in the midcap PSU banks and this is a space that has a lot of investor interest right now. Within the space, we like Indian Overseas Bank as it is one of the cheaper plays in the midcap PSU banking space.
IOB has always had issues with asset quality. Going forward, these asset quality issues will reduce and therefore the valuation discount to peers will reduce. The bank is trading at a price to book 1.2 which should trade up 2 times book going forward that’s where the upside comes in.
Why do you like IOB?
One of the stock stock picks for the day is in the midcap PSU banks and this is a space that has a lot of investor interest right now. Within the space, we like Indian Overseas Bank as it is one of the cheaper plays in the midcap PSU banking space.
IOB has always had issues with asset quality. Going forward, these asset quality issues will reduce and therefore the valuation discount to peers will reduce. The bank is trading at a price to book 1.2 which should trade up 2 times book going forward that’s where the upside comes in.
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