Hold PNB, says Mayuresh Joshi

Mayuresh Joshi of Angel Broking told CNBC-TV18, "The kind of drastic change that we have seen in terms of a perspective towards PSU banking stocks has changed since the recapitalisation announcement by the government. The numbers have been quite good as well for Punjab National Bank (PNB). If you look at all parameters that the bank report recovery has been good, loan growth has been better than what the street expected, the net interest margin (NIM) expansion has been same. You are probably seeing lesser slippages on a quarter-on-quarter basis. So, largely again on a book comparison, it is still quite reasonably valued compared to the lager private sector banks."

"The entire hope trade in terms of a good recovery happening both in terms of credit growth as well as the kind of slippage reported, reported slippages rather over the next few quarters actually coming down in a sustain manner reducing credit cost and thereby improving their return on assets (ROAs) is on the cards. One can clearly hold on to this," he added.