Agarwal prefers Bank of Maharashtra over Allahabad Bank

Rajesh Agarwal, Head of Research, Eastern Financiers Limited suggests sell Allahabad Bank at this point of time and switch to Bank of Maharashtra.

Agarwal told CNBC-TV18, “One should continue to hold Allahabad Bank. However the numbers were really terrible, 68 percent drop in bottom-line, net interest margins (NIMs) below 3 percent, non-performing assets (NPAs) above 3.1 percent. But still going forward with the banks focus on restructuring loans, focus on increasing CASA (current and savings account). If one holds for a pretty long period of time for one year or 18 months one can recover its prices. But at this point of time it is a sell, there are better opportunities available in the market.”
He further added, “In the private sector space we have likes of Yes Bank and IndusInd Bank which are doing very well. Even in public sector space we have Bank of Maharashtra which has given very good set of numbers. Even the dividend yield is quite high. So I would suggest sell Allahabad Bank at this point of time, switch to Bank of Maharashtra and if Allahabad Bank falls around Rs 110-115 then one can re-enter at these levels. But at this point of time it is a sell for a shorter period.”