PNB can see 20-30% upside: Sonam Udasi, IDBI Capital
Considering the sell off in some of the banks, the risk reward is becoming favourable with one year kind of view.
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| Sonam Udasi, Head of Research, IDBI Capital, in a chat with ET Now talks about banking stocks.
What are your views on PNB, Bank of Baroda, ICICI Bank and United Bank?
If you see the short term, my view is negative on the markets. I do not see much of a trigger in the short term. That said, considering the sell off that we have seen in some of the banks, the risk reward is becoming favourable with the one year kind of view. So this is a fundamental view.
In all these banks, we are seeing at least 20% - or in some cases 30% upside - with a one year view. Fundamentals are strong though there will be pressure on NIMs in say a Bank of Baroda or PNB in FY12. Largely, that can be taken care of. So this is why with the one year view you should be looking at those.
What are your views on PNB, Bank of Baroda, ICICI Bank and United Bank?
If you see the short term, my view is negative on the markets. I do not see much of a trigger in the short term. That said, considering the sell off that we have seen in some of the banks, the risk reward is becoming favourable with the one year kind of view. So this is a fundamental view.
In all these banks, we are seeing at least 20% - or in some cases 30% upside - with a one year view. Fundamentals are strong though there will be pressure on NIMs in say a Bank of Baroda or PNB in FY12. Largely, that can be taken care of. So this is why with the one year view you should be looking at those.
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