4 banking stocks that could give decent returns in 2014

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4 banking stocks that could give decent returns in 2014
Banking stocks, particularly the PSU banking names are showing some signs of life. Some have already rallied smartly in the last few weeks. Here are 4 banking stocks that could give decent returns in 2014.

Canara Bank

Canara Bank has slumped from 52-week high levels of Rs 550, to the current levels of Rs 278. The last quarter ending Sept 30, 2013 saw Canara Bank improving its asset quality marginally and the bank hopes to improve the same going forward as well.

The price to book value of the bank is still under 0.50 times. If the bank maintains the same dividend as last year the dividend yields itself will add up to almost 4 per cent. All this makes the stock an attractive buy at the current levels.

Syndicate Bank

Syndicate Bank looks excellent on the dividend yield front with a likely yield of more then 7 per cent, if the bank maintains last years dividend of 67 per cent.

Again, on the price to book value front the bank is quoting at 0.53 times. Unlike peers the asset quality at Syndicate Bank has not deteriorated too badly. A good stock for the long term, considering that the stock is avilable at a p/e multiple of under 4 times.

Bank of India

Bank of India was one PSU bank that surprised the markets with a sharp improvement in asset quality for the quarter ending Sept 30, 2013. The sharp improvement in asset quality triggered a good move in other banking stocks as well.

With a price to earnings multiple of just above 4, the stock looks attractive at the current levels. Like peers the dividend yield looks attractive at the current levels.

Yes Bank

Yes Bank has fallen from 52-week low levels of Rs 216 to the current levels of Rs 378. Though the stock has gained substantially since September, it may still have some scope for appreciation. If we assume on a very conservative estimate that the bank will report an EPS of Rs 40, the stock is still trading at a price to earnings of under 10. That's certainly attractive for a fast growing private sector bank.

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The views expressed in this article are those of the author and may not reflect those of Greynium Information Technologies Pvt Ltd, its subsidiaries and associates. The author has made every effort to ensure accuracy of information provided; however, neither Greynium Information Technologies Pvt Ltd, its subsidiaries and associates, nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to buy, sell in precious metal products, commodities, securities or other financial instruments. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and the author of this article do not accept culpability for losses and/or damages arising based on information in this article. 

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