Dhananjay Sinha of Emkay Global Financial Services suggests selling State Bank of India (SBI).
Dhananjay Sinha of Emkay Global Financial Services told CNBC-TV18, “We have a sell on State Bank of India (SBI) and we have maintained that. I think what is important to understand is that the provisioning ratio for the public sector undertaking (PSU) banks have been coming off and if you look at the results that have been announced on an aggregate basis, the put-call ratio (PCR) has come off by 200 bps.”
“Overall the profit after tax (PAT) is contracting and non-performing assets (NPAs) are continuously being concerned, so net NPA to networth ratio is in the region of the bank that has been announced close to 29 percent which implies that investment capital on capital is still very high. So I think FDI would also mimic some of these data points that we have seen with respect to other PSU banks,” he added.
Our Analyst already given this tips to our followers.
Sell State Bank of India – 12/11/2013
Sell State Bank of India – 11/11/2013