SENSEX NIFTY
May 10, 2012, 03.50 PM IST | Source: CNBC-TV18

Switch from PNB to Corporation Bank, Andhra Bank

Rajesh Agarwal of Eastern Financiers is of the view that one should switch from Punjab National Bank to Corporation Bank, Andhra Bank.

Rajesh Agarwal of Eastern Financiers is of the view that one should switch from Punjab National Bank to Corporation Bank , Andhra Bank .

Agarwal told CNBC-TV18, “PNB numbers were in line with expectations but the concerns on quality of stocks still remain. Even the management is being spectacle on the quality concerns because they feel that economy not doing well, there maybe some more slippages. Although they have said that deposits and advances would grow by around 18%, but we still feel that other banks are being available at cheaper valuation and some of them are giving better dividend yields, for example Corporation Bank, Andhra Bank would be a better bank to be in if one wants to be in PSU banking space. I would suggest switch from PNB to a Corporation Bank and Andhra Bank where even the revenue yield is in excess of 5%. So even if you are expected to hold for maybe six months or nine months time horizon your dividend yield is there and when the market moves up you get good returns, so I would suggest a switch.”

“I would suggest putting more cash into stocks at this point of time, because these kind of bad times when the sentiments are poor everywhere and everybody is talking of market collapsing more. Somebody is telling it might go to Rs 4,500, these are times when one can pick up good stocks at good valuation, because in a bull market you cannot have State Bank at around Rs 1,800 or a Larsen at around Rs 1,100, even BHEL at Rs 210-215 is a good buy. I don’t say that it might not go further from these prices. They might even show a cut of 5-10% from the current market price. But if you have a time horizon of one year, I won’t be surprised if some of them can give you 40-50% returns in that time horizon. So I would suggest buying at these dips, because these are giving good opportunities to buy in good stocks.”

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