Hold PNB, says Prashastha Seth

Hold PNB, says Prashastha Seth, Senior VP, IIFL Private Wealth.

Seth told CNBC-TV18, "Investor should continue to hold PNB. I think PSU banks might see some more pressure for another 3-6 months but the large part of the correction has already being done, so PNB has already corrected from Rs 1350 to Rs 1070 levels odd. You could probably see another 7-8% downside from these levels. But Rs 1,000 should be a level where PNB should probably get decent amount of support."

He further added, "My sense is that the downside is limited at this point of time. But if somebody takes a longer view I think the bank will continue to do well. I think it is probably one of the best ROEs among the PSU banks and it gives you a ROE of more than 20% for the last five years continuously. Valuations are not expensive, if you look at one year forward you are talking about 1.2-1.3 times price to book."

"I think in the long term in India the banking system is still much less evolved than most of the other economies so you will see banking system evolve. Banks essentially if you see given some of the best returns in 1-2-3-5 year time frame. If I am in a position I will continue to hold if I am an investor. For a trader it is a different call, 3-6 months stock could be under pressure."