See upside in Indian Overseas Bank: Angel

See upside in Indian Overseas Bank, says Vaibhav Agrawal, VP Research, Banking, Angel Broking.

Agrawal told CNBC-TV18, "Indian Overseas Bank is actually seen major asset quality pressure in the last couple of few quarters; I think going forward things will improve for this bank. In terms of earnings growth trajectory for this bank is expected to be quite strong. It is trading at a very attractive valuations. That is another stock where we see some amount of upside in the midcap space."

He further added, "Looking at the overall sector definitely we see some of the headwinds that were really affecting the sector in the past couple of months easing out. One of the things is that the interest rates do look to have peaked out primarily because if you see on the fiscal deficit front the market borrowing is going to be definitely much more manageable going into FY12."

"Secondly a lot of the insurance money is coming into debt instead of equity now so that is also easing up pressures to an extent. With interest rates looking to have peaked out and with the stock have been corrected so much, now that we are looking at FY13 numbers as well stocks are looking quite attractively prices, so there is definitely upside in several of the stocks in the banking space."