Hold Punjab National Bank: Joshi

Sharmila Joshi, Head of Equities, Fairwealth Securities is of the view that one can hold Punjab National Bank.

Joshi told CNBC-TV18, “Punjab National Bank (PNB) has disappointed us with their numbers and the NPAs had ballooned up which was disconcerting and the market has punished the stock. But from here on this is definitely not the price to sell. It is a difficult to take a call on March 2013 but as of now we have had one interest rate cut and we don’t see much in the immediate future. Going forward maybe not immediately in the next quarter but there is a definite room for improvement as far as NPAs go. So from that perspective PNB becomes a hold just now.”

She further added, “I don’t think the investor who bought it Rs 900 is likely to see that price by March 2013 going the way things are. Because I do not expect the next quarter to be that great either but once that is behind us, may be one could start seeing better levels close to Rs 800. But if the investor is willing to wait longer, will see the stock price but for now I would suggest a hold.”