Karur Vysya Bank can test Rs 450: Shanbhag

Ganesh Shanbhag of SMS Financial Services is of the view that Karur Vysya Bank looks pretty good with a one year horizon and we can see a price rise to the extent of around Rs 450.

Shanbhag told CNBC-TV18,"It basically doesn’t have a core promoter and it has been very well managed over the last 10 years we have seen it grow very well and it has been a very investor friendly bank and considering that this year the PAT would be roughly at Rs 190 crore on a cap of just Rs 50 crore, we are in for another Bonus and a Rights issue because they have to increase the capital over a period of time as per the Narsiman committee report and the Bassel to announce, so this stock looks pretty good with a one year horizon and we can see a price rise to the extent of around Rs 450".

Disclaimer: Ganesh Shanbhag has personal holdings in Karur Vysya Bank.