Hold Union Bank of India; target 150-155: Rajesh Agarwal

Rajesh Agarwal, Director - Research at Eastern Financiers Limited told CNBC-TV18, "All the public sector undertaking (PSU) banks, be it Union Bank of India or other banks, are trading at very attractive valuation due to all the negative environment which is surrounding these banks on tops of higher non-performing assets (NPAs), economy slowdown and all these things. But as we go into election period and the new government comes in and I am very hopeful that things would go better whichever government comes. As far as valuations are concerned, they are at very attractive levels, anybody can buy – a lot of PSU banks are there which are trading at very attractive levels."

He further added, "As far as Union Bank is concerned, the bank with around 3,600 branches as on June 2013 with representative offices in Dubai, London, Beijing I think it is one of the good bets, it is trading at a P/E of less than 3 prices to book value of 0.39. I think one can very well hold on to this bank and price target of Rs 150-155 can be achieved in the next six-nine months."