The Mumbai branch of Punjab National Bank had issued as many as 1,213 letters of undertaking (LoUs) fraudulently for the group of companies belonging to Nirav Modi since March 2011.
Last April, the nation's largest lender had re-introduced the penal charges on non-maintenance of average monthly balance after a gap of five years.
The valuations have come off from the recent highs which makes largecaps a preferred play, and midcaps after witnessing correction are still trading at a valuations higher than largecaps so we do not rule out further correction in this space, Sandeep Chordia, Executive Vice-President - Strategy, Kotak Securities, said in an interview to Moneycontrol's Kshitij Anand.
Rajat Bose of rajatkbose.com recommends buying PSU banks including Canara Bank and State Bank of India as well as Voltas and Jet Airways.
The Nifty PSU banking index jumped 3.66 percent led by Bank of India which zoomed over 9 percent intraday on the back of recovery of Rs 7,000 crore from other banks. Punjab National Bank was up 4.3 percent while Andhra Bank zoomed over 5 percent.
After the recent correction, valuations of Indian market have come down to a reasonable level which should give motivation to investors to accumulate quality stocks on declines.
The market breadth was in favour of the declines with 765 stocks advancing while 939 declined and 315 remained unchanged. On the other hand, in the BSE, 1199 stocks advanced and 1406 declined and 151 remained unchanged.
The top Sensex gainers were Videocon which jumped 5 percent followed by INOX Leisure, Vakrangee and Religare, each adding over 3 percent. IFCI added 2.8 percent in the morning trade.
The market breadth was in favour of the declines with 677 stocks advancing while 1039 declined and 302 remained unchanged. On the other hand, in the BSE, 989 stocks advanced and 1634 declined and 149 remained unchanged.
The market breadth was in favour of the declines with 247 stocks advancing while 1452 declined and 315 remained unchanged. On the other hand, in the BSE, 428 stocks advanced and 2095 declined and 102 remained unchanged.
The market breadth was in favour of the declines with 428 stocks advancing while 1215 declined and 367 remained unchanged. On the other hand, in the BSE, 645 stocks advanced and 1542 declined and 94 remained unchanged.
The other firms which witnessed a decline in their market capitalisation (m-cap) for the week ended Thursday were TCS, ITC, ONGC and HDFC Bank.
Ashwani Gujral of ashwanigujral.com is of the view that one can sell SBI, DLF and Axis Bank and can buy NTPC and Power Grid.
The house is of the view that with 5 percent CASA and 70 percent loans floating, the margin trajectory should improve. It expects further pick up in loan growth as we head towards end of year.
Deposit rates have been hiked as seen in the last couple of months as banking sector liquidity has dried up
Ashwani Gujral of ashwanigujral.com is of the view that one can sell DHFL, BOI, SBI and DLF and can buy Jubilant Foodworks and NTPC.
SBI chairman said that despite availability of technology at the bank the volumes were not high as sometimes these e-commerce players themselves provide funds to their lenders, which affects the volumes for the banks.
The bank has no exposure against LoUs issued by PNB on behalf of some of its gems and jewellery sector clients in news.
The nature of the alleged scam reduces the confidence level in the bank, and PSUs in general.
Ashwani Gujral of ashwanigujral.com recommends buying State Bank of India, Canara Bank and Union Bank of India.
The survey noted that State Bank of India has the largest number of agents in the country with a 38 percent market share in 2017.
Analysts have maintained their positive stance on the stock on hopes of asset quality improvement in FY19, expects the stock to give up to 35 percent return in next 12-month.
SBI reported Rs 23,239 crore divergences for FY19 and slippages jumped to Rs 25,000 crore. In FY19, the bank also plans to raise Rs 20,000 crore from the market
Profitability was hit by sharp spike in provisions. Asset quality also weakened on sequential basis.
Prabhudas Lilladher is bullish on State Bank of India has recommended buy rating on the stock with a target price of Rs 350 in its research report dated February 09, 2018.