Shares of PSU banking stocks or government owned banks are going for a pittance. Some of these shares are fallen to 2 year lows and a few analysts are now recommending buying these government owned banking shares as they could yield superlative profits in the next few years. Take a look at 5 such banking shares which are available at 2 year lows.
Tremendous value considering fundamentals
Shares in IDBI Bank have hit a 2-year low of Rs 69. The bank is a better managed government owned bank and is available at a very cheap price to book value of under 0.5. In fact, if you buy the shares now, you would also be entitled to a dividend of Rs 3.5 per share bringing down your cost of acquisition even further.
Share price well below 2-year low
Shares in Allahabad Bank are now trading at the lowest level in 2 years. Earlier this week, the shares of the bank hit Rs 93, a level not seen in the last several years. The stock is available at a book value of just 0.4, making it a superb buy.
Asset quality showing improvement
Vijaya Bank like most other PSU banks has also hit a 2-year low. The bank is better placed in terms of improving its asset quality which it did in the last quarter. Again, the stock is available at a price to book value of under 0.50 times.
Below 0.5 times price to book value
Andhra Bank has hit a 2 year low of Rs 78.25. If you buy the shares now you would also be entitled to a dividend of Rs 5 per share. Again, concerns on asset quality, but, stock available cheap.
Available at just 3 times P/E
Dena Bank is available at near 3 times price to earning multiple, making it attractive. It also has lesser concerns on asset quality.