Parag Thakkar of HDFC Securities told CNBC-TV18, "Bank of Baroda has been my top pick within the public sector undertaking (PSU) banking space after the new Managing Director has come. It is a buy and hold idea from two-three years' perspective. This bank is already a large bank with 450,000 crore of advances. So you can move some levers and your profitability will go up and fee income will also go up. So from that perspective at 1.2x book, it looks an interesting opportunity from longer term perspective.""Now the government has also formed a panel to resolve non-performing assets (NPA) issues of PSU banks and I am sure on the road side and on the power side government can play a crucial role while on the steel side definitely the government can do only so much because China is full of overcapacity and it is dumping steel all around. BoB also took a very large hit last quarter. So I hope that those kinds of large hits will not be repeated," he said.
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