Dena Bank can move to Rs 125: PN Vijay

Dena Bank can move to Rs 125, says PN Vijay, Portfolio Manager.

Vijay told CNBC-TV18, "Dena Bank is a forward looking buy. My perception in the last few weeks is that the smart trade is slowly inching back into rate sensitives. If you look at Dena Bank, it is one of the small well run government banks and as we all know, government banks have been totally out of favour in the last four months due to asset concerns."
He further added, "Dena Bank has got adequate capital from the Rs 500 crore from the government, so the capital adequacy is strong. They have maintained their CASA at 35%, which is pretty high, which means the high interest rates may not be affecting them that much. The net interest margins have been steady around 2.9%. There has not been any great slippage in assets and I think their standard provisioning for some of the smaller loans is very good."
"The concern people have about Dena and one or two other banks is the very large exposure to the power sector and possible large NPA