Prefer Canara Bank, SBI to Central Bank: Sekhar

Phani Sekhar, Angel Broking is of the view that one can prefer Canara Bank, State Bank of India to Central Bank.

Sekhar told CNBC-TV18, “Central Bank is one of the worst run banks in the form of asset quality, with 20 percent of the loan book in the form of stressed assets either in the form of restructured assets or gross NPLs. With one of the lowest provision coverage ratios and tier I capital – this is not the kind of bank that one should be looking to add at least. If you hold it and if you have that kind of long-term horizon over a three to five year time frame you will certainly make good money over it because things will certainly improve over a period of time. But I will not recommend adding Central Bank of India. He further added, “In the same PSU basket one can look at Canara Bank or State Bank of India on days of decline but in general private sector banks which are gaining market share and are better run will be a much better bet over long term perspective.”