You need to switch to PSU Banks

Every one is talking negative of the Banking Sector especially the PSUs. The Warren Buffet saying holds "Be Greedy when others are fearful" The mantra to get rich.

Most of the PSU Banks are beaten down heavily. They include SBI, PNB, BOB, BOI,
Canara Bank

Time to invest or get out. Think and don't have the herd mentality

 

Be Greedy when others are fearful this is useless advise for Indian PSU banks are concerned

 

Dear Moneyworks, everyone is not yet fearful for PSU Banks
Once NPA's of reality sector are opened and they drag banking down, after that time we can get in IMHO.

 

Wait till government sell stakes n get out (can happen only by april FY16)

 

Anyone who invested in the PSU's Banks during their recent turmoil got around 30% - 35% returns.
SBI, PNB, BOB, BOI, Canara Bank

 

last yr in pnb i booked 110% profit(before split).i bought pnb around 480(average cost) before split.historically sbi is cheap but not cheap enough to dip in now.

 

30 % Profit and It will be time to exit

 

Dear MoneyWorks4ME ,

main problem with PSU BANK are high Non performing assets ....
Non Performing Assets means " POISON " day by day increasing in Banks Financial Positions ...

If you want to buy "SBI " is the best ....

but remaining PSU Banks are almost weak stocks
"Warren Buffet saying .... " Be Greedy when others are fearful " mantra perception is different...
when market get crashed ...be greedy in good fundamental cheap price stocks

ALL THE BEST BROTHER

 

Did anyone acted on the Post? If YES they would be sitting on a cool 7 - 10 % GAINS

 

I think you guys should also look at Syndicate bank. Gives 4.50 rs per share dividend. Low NPAs (lowest in PSU banks space I think). Good NII and credit growth. Just looks too cheap right now.

 

In a discussion on CNBC aawaz regarding future of public sector banks, an expert said that some of the public sector banks like sbi, bob, pnb are good invetment, but the problem with public sector banks is that they dont have proper management. The management is always under government pressure and cannot function independently. This is why ps banks have more npa than private banks.

 

What are the good pick from PSU banking space at current rate?

 

SBI. SBI is the largest PS Bank in India. It has branches abroad also. If you are looking for long term investment, SBI, PNB.

 

Agreed better stick to large cap Psu because Npa issue is handled better.

 

I would suggest Syndicate Bank in the PSU pack. Great dividend yield, one of the lowest NPAs, and good credit growth.

 

When everyone was talking negative of the Banking Sector especially the PSUs., We were yelling on top of our voice to buy them. The Warren Buffet saying holds "Be Greedy when others are fearful" The mantra to get rich.

What a fantastic run for SBI, PNB, BOB, BOI, Canara Bank

Remember get your valuations and entry and exit strategies right.

 

Psu banks are only trading bets in both direction. They are no more investment stocks and presently market share of psu banks is 70% and in next 10 years it may reduce to 30%.PSU will remain in ICU as Young generation is banking with new generation pvt banking.

 

I still feel that there will be a few PSBs left after 10 years. SBI is a prime example which is about to become a behemoth after the amalgamations. Other PSBs will soon consolidate within each other as well. I believe if Govt is serious about improving the competitiveness of these banks, then these banks can compete to maintain their market share.

 

main problem with PSU banks is " Huge NPA " ..... In Private banking NPA is very less because Bank staff working with efficiency with reasonable salaries ...In PSU banks almost staff is working for high salaries , benefits and their Rights purpose
Banking reforms needed

 

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