Investors flock to government bank shares cheaper than Rs 40, may still make a splash
Experts are bullish on the banking sector in the long term, but the state-run bank’s relatively cheap shares, trading at less than Rs 40, have made investors rich over the past one year and are likely to rise further.
Quarterly results season is underway in the stock market. Meanwhile, side earnings options including dividends are also coming up in the midst of turbulence in the market and based on these results you can also plan your strategy for the next 3-6 months. It is important that on the one hand, where the IT index is under heavy pressure, there is hope of specialization in the banking index.
Then the result of the last quarter of the business year 2022-23 of another government bank has come out. UCO Bank’s profit has increased by 86 percent in the period January to March 2023 of the year 2022-23 compared to the same period of the financial year 2021-22. Which has increased from 312 crores to 581 crores.
Shares of the bank closed 2 per cent higher at Rs 30.75 on Tuesday, following a huge jump in the bank’s NII and looking at its quarterly results. Apart from this, the stock has gained 11 percent this week, 25 percent in the last one month and 160 percent in a year.
The bank’s NII has increased by 20 percent in the year 2022-23 compared to the fourth quarter of the financial year 2021-22. Which has increased from 1,653 crores to 1,972 crores. So, on a quarterly basis, NPAs have come down in this January-March quarter as compared to the October-December period of the year 2022-23.
