5 PSBs beat markets, hit new 52-week high Do you own any of them?

Here’s how these 5 PSB stocks fared on November 7:

Indian Bank:

This PSB in Chennai closed on Monday 259.85 each on the BSE, up 4.17%. Earlier in the day, the stock touched a new 52-week high 269 ​​each. Its market cap is approx. 32,362.79 crores.

in one year, Indian Bank Shares have gained over 47% on Dalal Street.

During the second quarter, Indian Bank Registered 12% year-on-year growth in net profit 1,225 crore, while Net Interest Income (NII) grew by 15% 4,684 crore. Advances up 14% year-on-year 4,37,941 crore in Q2FY23, while deposits grew by 7% annually 5,88,860 crores. Gross NPAs declined by 226 basis points to 7.39% and net NPAs declined by 176 basis points to 1.5% year-on-year in Q2 of FY13.

In his report, Anand Rathi said, “High NIMs and decent fee income growth have kept Indian Bank’s operating performance strong, which has a C/I ratio of less than 45%. However, due to high credit costs (~2%). Gains decreased, ROA at 0.7%. Slippage was high; however, GNPA improved due to higher write-off. Going forward, we expect slippage to moderate as most of the stress has already been identified. Further “We expect the bank to gain market share from its peers. PSBs. We maintain our positive outlook on this, at a TP of Rs 290, valued at 0.6x P/ABV on its FY25e book.”

Bank Of Baroda:

Closed on BoB 158.35 each, up 9.55% on the BSE. Shares hit new 52-week high 161.75 the first on every Monday. Its market cap is approx. 81,888.52 crore.

In one year, BoB’s shares on D-Street have risen nearly 50%.

In the second quarter of FY23, Bank recorded a standalone net profit of 3,312.42 crore increased by 58.70%, and NII increased by 34.47% 10,174.46 crores. Provisions and contingencies remained at the following levels in Q2FY23: 1,627.46 crore as against the provisions of 2,753.59 crore in Q2FY22. In percentage terms, Gross NPAs stood at 5.31% in Q2FY23 – falling sharply from 8.11% in Q2FY22 and 6.26% in Q1FY23. Global advances grew by 19% y-o-y and deposits registered a y-o-y growth of 13.6%.

Analysts at Prabhudas Lilladher said in their report, “With stable earnings profile, we expect ROA/ROE for FY24/25E to be close to 0.9%/15%. Valuation at 0.8x Sep’24 ABV Attractive Which suggests a discount of 40% to SBI, which should narrow. Going forward Sep’24 ABV, we increase the multiple from 0.9x to 1.0x and TP from Rs 130 to Rs 190. Upgrade to BUY Do it.”

Union Bank of India:

Mumbai-based PSBs ended up 6.07% 58.55 each on BSE. The stock touched a new 52-week high 59.10 each on Monday. Its market cap is approx. 40,017.45 crore. Union Bank’s shares have gained nearly 9 per cent in one year.

Union Bank announced its second quarter results last month. During Q2FY23, the bank earned a net profit of 1,848 crore year-on-year up 21.07%, while net interest income (NII) came in 8,305 crore is an increase of 21.61% annually. Gross NPAs (%) declined by 419 bps to 8.45% and Net NPAs (%) y-o-y basis declined by 197 bps to 2.64% as on 30th September, 2022.

In its latest report dated November 6, analysts at Motilal Oswal said, “UNBK has been reporting a healthy performance over the past few quarters with strong NII, margin expansion, higher other earnings and earnings driven by moderation in provisions. Slippery has been moderating, which coupled with healthy recovery and upgradation has improved the asset quality ratio well ahead of the target set for FY 23E. Also, a lower SMA book (0.57%) and controlled restructuring (2.6%) assets Provides a better outlook on quality. Credit growth has grown well and is broad-based with a focus on improving credit growth going forward.

Further, the brokerage’s note states, “We anticipate growth in FY 2013-24 with ROA/ROE at 0.8%/13.9% respectively at ~12-13% in FY23-24.” We maintain our buy rating with TP. 65 (based on 0.6x FY24E ABV).”

Canara Bank:

Canara Bank shares closed on Monday 309.45 each on the BSE, up 4.23%. The bank had touched a new 52-week high 311.80 each day before. Its market cap is approx. 56,138.26 crores. Shares have gained about 27 per cent in one year.

Further, on Monday, the government appointed former TCS vice-chairman Vijay Srirangan as part-time non-official director as well as non-executive chairman on the bank’s board. In addition, yesterday, the bank announced that Jagdish Chander is replacing Chief General Manager AV Rama Rao as Chief Risk Officer of the General Manager Group.

During Q2FY23, Canara Bank registers a growth of 89% in Net Profit 2,525 crore, and the total income increased by 24,932.19 crore vs. 21,331.49 crore in Q2FY22. Gross NPAs increased to 6.37% in Q2FY23 as against 8.42% in Q2FY22.

LKP Securities in its report post Q2 said, “Keeping in view the near term capital infusion, we expect the bank’s loan book to grow cautiously at a CAGR of ~20% in FY22-24E, in line with RAM and corporate book growth. In our opinion, the bank’s credit cost will further normalize by FY23E, and projected a return ratio of 1.2% and ROA/ROE of 18.9% in FY24E. We value a standalone entity with a BVPS of 0.6xFY24E ( 538) and reach the target price of 323.”

Bank of India:

BOI shares closed 70.60 each, up 5.45 per cent on the BSE. The stock touched a new 52-week high Earlier on Monday 71 each. Its market cap is approx. 28,971.18 crores.

BOI shares on D-Street have gained nearly 12 per cent in one year.

Last week, Bank of India announced that the board has approved raising Tier-1 capital by issuing additional Tier-I (AT-I) bonds in line with Basel III. 2,500 crore in one or more installments.

The bank also announced its financial performance for the second quarter last week. In Q2FY23, the bank posted a net profit of 960 crores is down 8.65% annually but is up 71% sequentially. nii stood 5,083 crore 44% yoy and 25% sequentially. Meanwhile, the gross NPA ratio stood at 8.51%, a decline of 349 bps in the second quarter, while the provision coverage ratio came in at 88.96%.

Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.