Exit Canara Bank, says Pankaj Jain

Pankaj Jain, Director of Sunteck Wealthmax Capital told CNBC-TV18, "Canara Bank would remain underperforming stock. Till few years back Canara Bank used to be league of Punjab National Bank (PNB) and Bank of Baroda (BoB) after State Bank of India (SBI) and it has lost the space and it has lost the race. What we have seen in recent quarters is that asset quality of this bank is coming down with each quarter and maybe their large exposure to this infrastructure sector, power sector is one of the reasons. Not to forget that in this Q2 treasury income would be very muted and Q2 results will come into play.”

“Taking that into consideration, the kind of event related bounce back that was seen in most of these banking stocks including Canara Bank seems to be over now. So, I think Canara Bank would again drift down to levels closer to Rs 200. So one should come out of Canara Bank and take your money somewhere else, “he added. Disclosure: Stock discussed may has been recommended to clients.