You need to switch to PSU Banks

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by MoneyWorks4ME, Aug 12, 2015.

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Which of the PSU Banks will you place your bet?

Poll closed Aug 15, 2015.
  1. SBI

    100.0%
  2. BOB

    0 vote(s)
    0.0%
  3. BOI

    0 vote(s)
    0.0%
  4. PNB

    0 vote(s)
    0.0%
  5. Canara

    0 vote(s)
    0.0%
  1. MoneyWorks4ME

    MoneyWorks4ME Active Member

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    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
     
  2. Biju

    Biju Member

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    Be Greedy when others are fearful this is useless advise for Indian PSU banks are concerned
     
  3. Ashish Gangwar

    Ashish Gangwar New Member

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    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.
     
    Rahulpahade likes this.
  4. Investor2008

    Investor2008 Member

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    Wait till government sell stakes n get out (can happen only by april FY16)
     
  5. MoneyWorks4ME

    MoneyWorks4ME Active Member

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

    anindyaswati Member

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    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.
     
  7. MoneyWorks4ME

    MoneyWorks4ME Active Member

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    30 % Profit and It will be time to exit
     
  8. RAMA MURTHY SASTRY CHALLA

    RAMA MURTHY SASTRY CHALLA Well-Known Member

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    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
     
  9. MoneyWorks4ME

    MoneyWorks4ME Active Member

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    Did anyone acted on the Post? If YES they would be sitting on a cool 7 - 10 % GAINS
     
  10. dineshkapoor27

    dineshkapoor27 Active Member

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    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.
     
  11. New_Investor

    New_Investor Active Member

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    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.
     
  12. n.singh

    n.singh New Member

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

    New_Investor Active Member

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

    Srouta Mukherjee Well-Known Member

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    Agreed better stick to large cap Psu because Npa issue is handled better.
     
  15. dineshkapoor27

    dineshkapoor27 Active Member

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    I would suggest Syndicate Bank in the PSU pack. Great dividend yield, one of the lowest NPAs, and good credit growth.
     
  16. MoneyWorks4ME

    MoneyWorks4ME Active Member

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    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.
     
  17. kharb

    kharb Well-Known Member

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    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.
     
    Last edited: Sep 6, 2016
    Farhan Ghumra likes this.
  18. dineshkapoor27

    dineshkapoor27 Active Member

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    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.
     
  19. RAMA MURTHY SASTRY CHALLA

    RAMA MURTHY SASTRY CHALLA Well-Known Member

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    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
     
    Farhan Ghumra likes this.
  20. MoneyWorks4ME

    MoneyWorks4ME Active Member

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    Our Subscribers would be smiling their way to the bank
     
    Srouta Mukherjee likes this.
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