The safest bets in bank stocks

Stay invested in banking & Finance: Prabhudas Lilladher

Since the financial crisis became acute in the West last year, the flight-to-safety syndrome has caught the banks worrldover. The Indian banking sector has been no exception.

With the banks in a deep freeze mode holding capital and going slow on lending to corporates as well as individuals, this has cast a shadow on shareholder's profits in the short-term. With the Reserve Bank of India easing policy rates signaling a change in its monetary stance, the sector is expected to emerge out of the credit contraction mode.

Invest in Vijaya Bank, says Shahina Mukadam

Mukadam told CNBC-TV18, "I believe for this year Vijaya Bank would end with an earnings of atleast Rs 7. This looks good on a PE basis. On price to book also it looks very attractive because the book for FY09 end March was almost Rs 61, so on a price to book also this is very attractive at around Rs 50 levels.”

She further added, “This would make a good pick especially this is a prime candidate for consolidation with some of the larger banks. It has some good presence in the south. It is facing certain constraints on growth because the equity of the government is about 55%, so really speaking it is not able to expand because of this constraint. So, investment in Vijaya Bank with a 2-3 year horizon will give a good return. So I would look to invest in the company fundamentally."

RELATED NEWS

• Vijaya Bank has support at Rs 49-50: Gujral
• Buy Vijaya Bank; target of Rs 62-65: Mohindar
• Vijaya Bank has target of Rs 70: Mitesh Thacker

Keep Rs 131 Stoploss in IDBI Bank-Thacker

Keep Rs 131 stoploss in IDBI Bank, says Mitesh Thacker on Moneycontrol Archives " style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; ">Mitesh Thacker, Technical Analyst, miteshthacker.com.Thacker told CNBC-TV18, "Yesterday IDBI Bank went and made a new high, so it still looks strong. The indicators remain on buy mode and Rs 145- 150 could be a good for a trader in the short-term and I would suggest a stoploss of Rs 131."

ICICI Bank price target is Rs 879-Angel Broking

Net Profit grows 21%: ICICI reported a growth in Net Profits of 21% yoy to Rs878cr, higher than expectations, on account of large treasury gains, though the Core income was slightly below expectations.

Development Credit Bank Ltd-Target 40

Keep Rs 36 stoploss in DCB bank with a target of 40