It may not be a prudent strategy to buy the stock just yet even as it is at lower valuations
The Street seems particularly wary of numbers annual reports of other private banks that have substantial corporate lending portfolio.
Hudco, a miniratna, is in the business of financing housing and urban infrastructure projects.
Analysts in an ETNow poll had predicted a profit of Rs 2,115 crore for the January-March quarter.
However, after a sharp jump in stock prices over the past year, valuations appear to be rich.
While the stock may react positively to the March quarter numbers, a meaningful re-rating may depend on improvement in business performance parameters.
The bad assets proportion of Indian Bank remains one of the lowest amongst PSBs and comparable to that of SBI.
Any near-term likely pullback in the stocks may actually act as buying opportunity.
While as of December 2016, large corporate banks have about 1.5%-3% of their domestic book exposed to the telecom industry , the weakening fundamentals of the sector is a developing concern.
The central bank asked banks to make more disclosure regarding non-performing assets, provisions and net profit in “notes to accounts” in their annual financial statement.
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