Enter Bank of Baroda around Rs 750, says PN Vijay

PN Vijay, Portfolio Manager, www.askpnvijay.com advises traders to enter Bank of Baroda around Rs 750.

Vijay told CNBC-TV18, “I haven’t followed the UCO Bank results, but Bank of Baroda I have looked at in depth. Bank of Baroda again was a very bad surprise. People always gave a premium to Bank of Baroda right through 2012 because of the management quality, the asset quality, the transparency and there was a general perception in the market that Q3, there would be an abatement of provisions and non-performing assets (NPAs) and suddenly Bank of Baroda coming up with such a howler shocked the street. One of the reasons for this accelerated fall in the market is that because suddenly everybody is feeling that the public sector undertaking (PSU) banks are up the wall still. They had some good news from Bank of India.” He further added, “Bank of Baroda apart from upsetting itself, its upset the whole banking sector I feel. So, I would not buy that. It is inprinciple wrong to buy a stock just because it has fallen. We have seen in the market that these stocks can fall a lot and it is best to let it fall and then look for at least one positive development of a long standing nature. Perhaps one quarter when the gross non performing assets (GNPAs) are really coming down for example. If you get Bank of Baroda at that time at even this price of Rs 780 or even Rs 750 or even Rs 800, it should be good. Right now there are better choices in the banking sector.”