Shares in government banks have made far better returns for investors, than their own fixed deposits. In fact, shares in a bank like Indian Bank has given a return of 60 per cent in 1 month. We have been suggesting to buy govt banking shares for some time now. Take a look at the shares that have given more than 40 per cent returns in 1 month.
Allahabad Bank shares have jumped 51 per cent in 1 month, while the bank's Fixed deposits give a return of as low as 7.5 per cent. It's very difficult to get returns of 40 per cent in 1 month.
Punjab National Bank
Shares in Punjab National Bank have gained a huge 53 per cent in the last 1 month. Hopes of economic recovery and improvement in NPAs is what is promoting the surge in the share price of the bank.
Shares in Oriental Bank have surged 47 per cent in the last 1 month. This used to be one of the better managed banks in terms of asset quality.
Should economic recovery gather steam, we could see further upside in the stock.
Indian Bank shares have jumped a staggering 60 per cent in 1 month. It may take almost 8 years to make that kind of return by placing money in the fixed deposits of India Bank.
State Bank of Mysore
State Bank of Mysore has given returns of 47 per cent in the last 1 month on hopes of a merger with State Bank of India. The other SBI subsidiaries have also rallied significantly.
This bank's shares have given a return of 47 per cent in 1 month. It is a much smaller bank as compared to peers and there are talks of merger of smaller banks with the larger government owned banks.
Central Bank of India shares have given a return of 33 per cent in 1 month. The Central Bank Fds on the other hand fetch you a return of just 7.5 per cent for the entire year.
Returns from owning the shares in the last 1 month has beaten FD returns by a huge margin.