3 Banks Thrown to ‘Lowest’ Valuation after Market-Wide Selling!
Last week came as a surprise to market participants as a report by short-selling firm, Hindenburg, alleging a big financial fraud by the Adani Group ended up creating a widespread panic in the Indian markets. This led to a severe selling spree as investors hurried to liquidate their holdings which have exposure to the group.
Many banking stocks also fell victim to the panic, which eventually threw them to lucrative valuations. In that vein, here are three profitable banking stocks that are available at the cheapest valuation.
Karnataka Bank Limited
The first one on the list is Karnataka Bank Ltd. (NS: KBNK ) which is a small-cap private lender, having a market capitalization of INR 4,441 crores. It has strong and diverse sources of income with a well-balanced lending profile including retail, corporate and MSMEs. The bank also has a consistent dividend history with a generous payout ratio between 11.61% to 24.47%.
In Q2 FY23, the bank reported a 6.13% YoY jump in deposits to INR 81,634 crores while net profit jumped a whopping 126.9% YoY to INR 525.81 crores. It was also able to improve its NIMs to 3.56%, from 3.15% a year ago. The bank is still trading at a P/E ratio of a mere 8.74, which is the lowest in the entire banking space.
Indian Bank Limited
Indian Bank (NS: INBA ) is a public-sector lender with a market capitalization of INR 36,339 crores. The bank’s advances grew 13% YoY to INR 4.52 lakh crores, while deposits jumped 6% YoY to INR 5.97 lakh crores. It depicted a stellar performance on the NII front, clocking a figure of INR 5,499 crores, reflecting a 25% YoY jump.
FII’s have more than doubled their stake in three quarters, from 1.72% as of March 2022 to 3.59% by the end of the December 2022 quarter. Despite a run-up of 80.1% in the last one year, it is still trading at a P/E ratio of only 8.77.
Canara Bank Limited
Canara Bank Ltd (NS: CNBK ) is a large-cap PSU bank with a market capitalization of INR 55,451 crores. It clocked a record revenue of INR 94,256.89 crores in FY22, while Q3 FY23 net profit jumped a massive 91.88% YoY to INR 2,882 crores. Gold loans also increased by a noticeable 34.21% to INR 1,15,286 crores.
In the last week alone, the stock fell 8.76% and the P/E ratio dropped to 9.05, making it the cheapest large-cap bank on the NSE. FIIs’ holdings in the bank have also reached to the highest level in the last 6 quarters, at least, at 8.74%.
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Canarabank good pick,Surprise to see IndusInd bank but khanna sir missed telecom loan book now started recovering NPA ...Like 0
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indus bankLike
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some up side but down compulsory comingLike
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sell sbin 553 target 540 intradayLike
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sell all share basket selling coming some hours nifty 1.5% down side bank nifty also 1.5% down side comingLike
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sell adani poert 613 target 580 intradayLike
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sell nifty 17687 target 17514.15Like
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sell acc 1922 taraget 1881Like
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sell bank nifty 40700 target 40099 some hoursLike
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sell bank nifty 40675 target 39800 stbtLike
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@NIRAV JARIWALA today target archive karegeLike
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sell bajaj finance 6060 target 5981 intradayLike
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@NIRAV JARIWALA sell stbt target 5750Like
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Indian Bank is not a private bank.It is a Public Sector Bank.Like
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Thanks Sudheer for spotting the typo.Like
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ok. is Karnataka Bank a buy from a short or medium term perspectiveLike
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@Jeyaram Ganesan I don't recommend to buy or sell.Like
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