The Nifty PSU Bank Index is meant to reflect public sector bank performance. Banks, play an essential part in ours because the majority of transactions are conducted through them. The Reserve Bank of India is the country's central bank and the country's monetary authority. Commercial banks are divided into three categories: public/government banks, private sector banks, regional rural banks, and foreign sector banks. Here are four Nifty PSU bank equities that have outperformed the market in the last 12 months.
4 PSU Bank Stocks That Gave Over 100% Returns
|PSU Bank||LTP (July 23)||1-Year return||YTD|
|J & K Bank||37.95||127.25%||55.85%|
|I O B||24.25||124.54%||124.54%|
J & K Bank
Jammu and Kashmir Bank Ltd. is an Indian government-owned scheduled banking and financial services corporation based in Jammu and Kashmir. It was founded on October 1, 1938, by Hari Singh, the King of Jammu and Kashmir, it has a market cap of Rs 2,732.52 Crore. The Ministry of Finance, Government of India, owns it. Last month, Jammu & Kashmir Bank said that its board of directors had authorised a proposal to raise up to Rs 150 crore by issuing shares to employees.
Stock lost -19.87 percent over three years, compared to 46.55 percent for the Nifty Smallcap 100. But it gave whoophing return of over 100% in the past year. Since the last three years, the corporation has continuously maintained a NIM of 3.59 percent. CASA currently has 53.66 percent of all deposits. The bank has a poor track record in terms of return on assets (ROA). The three-year average ROA is -0.12 percent. Over the last three years, the company has had a low ROE of -2.70 percent.
Indian Bank is a financial service and banking corporation controlled by the Indian government. It is owned by the Government of India's Ministry of Finance, which was founded in 1907 and is based in Chennai, India. Annual sales growth of 84.61 percent surpassed the company's three-year CAGR of 32.33 percent. CASA currently has 42.30 percent of all deposits.
Over the last three years, the company has grown its profits by 33.64 percent. The stock returned -56.21 percent over three years, compared to 50.8 percent for the Nifty Midcap 100. In the past year, stock returned over 129% to its investors.
Indian Overseas Bank
The Indian Overseas Bank is a prominent government-owned bank in India. It is owned by the Ministry of Finance, Government of India, and has roughly 3,400 domestic branches, 6 overseas branches, and a representative office in Chennai, India. The stock returned 78.83 percent over three years, compared to 41.64 percent for the Nifty 100. CASA currently has 40.26 percent of all deposits. The bank has a poor track record in terms of return on assets (ROA).
The three-year average ROA is -1.51 percent. Over the last three years, the company has had a dismal ROE of -28.53 percent. It is a banking company having a market cap of Rs 46,310.91 Crore. e most recent financial year, the Gross NPA and Net NPA were 14.78 percent and 5.44 percent, respectively. In the past year, the stock has generated return of 124%, which is good when compared to its peers.
State Bank of India
The State Bank of India, based in Mumbai, Maharashtra, is an Indian multinational public sector bank and financial services statutory entity. SBI is the world's 43rd largest bank and the only Indian bank in the Fortune Global 500 list of the world's largest firms for 2020, ranking 221st.
In comparison to the Nifty 100, which returned 41.64 percent over three years, the stock returned 58.46 percent. CASA currently holds 45.40 percent of all deposits.
Over the last three years, the company has seen a 72.32 percent increase in profit. The bank has a poor track record in terms of return on assets (ROA). The three-year average ROA is 0.29 percent.
Over the last three years, the company has had a low ROE of 5.64 percent. The stock has returned 119% percent over the last year, which is great when compared to its peers.
Please keep in mind that past results may not be indicative of future performance. Different types of investments include different levels of risk, and there is no guarantee that any single investment, investment strategy, or product mentioned in this article will perform well in the future. When it comes to stock selection, historical returns might be a useful metric. Returns, on the other hand, should not be the primary consideration for an investor. Investing in stocks is risky and investors need to be cautious. Neither Greynium Information Technologies Pvt ltd nor the author would be responsible for any losses incurred based on decisions made from the article.