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Stock Tips: Strong quarterly results and solid fundamentals have made Canara Bank, Indian Bank, and Bank of Baroda top picks among several brokerage firms.
If you’re looking to invest in profit-making stocks, three PSU banks might be worth considering. (News18 Hindi)
If you’re on the lookout for profit-generating stocks, three PSU banks could be worth your attention. Strong quarterly results and robust fundamentals have made Canara Bank, Indian Bank, and Bank of Baroda top picks for several brokerage firms.
Brokerage house Motilal Oswal has given a ‘Buy’ rating to Canara Bank and Indian Bank, while HDFC Securities recommends investing in Bank of Baroda.
Canara Bank
Motilal Oswal has advised buying Canara Bank shares, setting a target price of Rs 135. On Friday, the stock closed at Rs 105.90 on the NSE, nearly 15% below the target. According to the brokerage, Canara Bank posted a strong quarterly performance, with better-than-expected earnings. Net interest income (NII) remained steady, and expenses were kept under control.
Indian Bank
Motilal Oswal has also issued a ‘Buy’ call for Indian Bank, which closed at Rs 621.50 on Friday. The brokerage projects a 16% upside. It notes that Indian Bank delivered healthy quarterly results. Loan growth outpaced deposit growth, slightly boosting the credit-deposit (CD) ratio. The bank’s management expects its net interest margin (NIM) to remain between 3.15% and 3.3%, with a strong outlook for growth.
Bank of Baroda
HDFC Securities recommends buying Bank of Baroda stock, assigning it a target price of Rs 290, around 21% higher than its current level of Rs 235. While the bank’s latest results were slightly below expectations due to weaker fee income and rising credit costs, deposit growth stood at 10% year-on-year, though it dipped 2.5% quarter-on-quarter. The bank’s NIM has been affected by its significant foreign loan portfolio (18%), but low credit costs and a strong customer base have helped it maintain better return ratios than its peers.
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