Neutral on Canara Bank: Vaibhav Agrawal

Vaibhav Agrawal, VP Research, Banking, Angel Broking, in a chat with ET Now, shares views on banking stocks.

I am guessing that even you guys must not be liking Canara Bank?

We are neutral at this point. The stock had actually run way ahead of its fundamentals, valuations have gotten very rich which usually happens when a bank is about to go for a QIP. So post the QIP, we are neutral, the stock we expected to come down and it has in fact corrected quite a bit and at these levels, it is more or less fairly valued. So we do not see major downside from these levels. At the same time, we would now ask investors to increase exposure here at this point.