Vijaya Bank may touch Rs 78 in long term: Diwan

Prakash Diwan, Director of Altamount Capital Management told CNBC-TV18, "Some of the smaller banks not withstanding what is happening to them right now offers a very good M&A environment. Vijaya Bank is one of those banks that we have seen in the past, very clearly Reserve Bank of India (RBI) has also indicated they are looking at consolidation within the industry and some of these well run banks are getting limited by virtue of their small size of the balance sheet."

"It is a neat and clean balance sheet no doubt but it is distinctly small so it needs that scale up and that is where M&A candidate is," he said.
He further said, "It is a neat and clean balance sheet no doubt but it is distinctly small so it needs that scale up and that is where M&A candidate is what Vijaya Bank looks like. Our long-term view on this is it can probably touch Rs 78 going by the book value and their just read EPS growth rate that the bank is likely to clock." Also Read: Tourism Fin Corp to seek licence from RBI to set up bank