Dena Bank a safer bet, says PN Vijay

Dena Bank is a safer bet among PSU banks, says PN Vijay, askpnvijay.com.
 
Vijay told CNBC-TV18, “The whole market including us has been overweight on the private sector banks, Axis Bank, ICICI Bank, Yes Bank, IndusInd Bank and so on. One can keep those positions, but not add to them, because the price-earnings multipliers and the price to book of them are already factoring in most of the growth, most of the good Non-Performing Asset (NPA) numbers etc. So there is no great additionality out there unless we have seen a huge boom in the market.”
 
He further added, “The Public Sector Undertakings (PSU) banks are more difficult to call. One could sort of stick out one’s neck and say one could be selective and where there is good performance and NPA one could open positions. What is the market? Market is all about value investing. It is not keeping on buying ITC and ICICI Bank, right? If you want to make big money - 30-40 percent you have to take a bit of risk and there is a lot of risk reward available in the PSU banks, but you have to trade very carefully and probably the likes of Dena Bank etc. look much cleaner and safer than many others.”