Profit booking likely in OBC: SP Tulsian

Profit booking is likely to happen in Oriental Bank of Commerce (OBC), says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, “I am not too excited with the Oriental Bank of Commerce (OBC) number because if you see in the Q1 they have really improved they have curtailed their gross NPA, they have curtailed their net NPA in the June quarter and in fact if you see the EPS of Rs 13.50 for June quarter and now they have posted EPS of Rs 10.40. I am not going merely by the bottomline alone but yes they held on their asset quality.”
He further added, “There has not been much improvement neither there has been deterioration so I wont be too excited to take the share to move by 6-7% which we have been seeing today. In fact I find this to be more non exuberance or one may say that probably they have not seen any kind of deterioration in the asset quality so let’s take this as positive but I am not convinced in that way probably these are the technical forces which have been holding on. In fact we have seen huge run up in the share price after the Q1 numbers which legitimately justified that kind of upmove and that is being held on so maybe the share seems to have reached its optimum value and maybe profit booking can come in the next series once the expiry comes to an end today.”
“PNB is going to disappoint the market because the kind of fear on the asset quality is definitely going to disappoint. But I am quite positive and optimistic on the ICICI Bank and more specially after having seeing the numbers from Axis Bank, Yes Bank, IndusInd Bank and maybe the fourth one Kotak Mahindra in fact all of them have performed very well and probably ICICI Bank will likely to surprise on the lines having posted by the Yes Bank. So I am quite optimistic and positive for the ICICI Bank numbers.”