Sell UCO Bank on rallies: Mayuresh Joshi

Mayuresh Joshi, VP Institution of Angel Broking told CNBC-TV18, "If one looks at UCO Bank's financial performance the kind of asset quality pressures that generally the public sector undertaking (PSU) bank as a whole are facing with a kind of NPA corporate cycle structure that we are going through in the higher provisioning cost will take a toll on margins of not just UCO Bank but general PSU pack as a whole. If one come structurally to UCO Bank's performance it has been dismal performance so far. The NPA cycle is not playing out favourably for them and the asset quality is also playing truant when it comes to UCO Bank stocks."

"So, my own recommendation is possibly use rallies like today to exit UCO Bank and possibly look at stocks like Syndicate Bank if one is interested within the PSU space where we see that there is a lot of value within the stock even from a price to book perspective, he added.

"UCO Bank is trading at a larger premium, at a 10 percent premium to something like Punjab National Bank (PNB) or Bank of Baroda (BOB). So, in my opinion if one could exit UCO Bank and look at something like Syndicate Bank if one interested in the PSU space and then look at that on declines," he added.