The Indian Government is considering selling a 5 to 10 percent stake in some state-run Banks. The Government is keen to take advantage of the sharp rally that has been observed in the share prices of Public Sector Banks (PSBs) that are riding on much-improved financial performance and fundamentals.
According to reports, the stake sale can be conducted through the offer-for-sale route for lenders that are not inclined toward a rights issue. Currently, the Government holds over 80 percent equity in six Banks, i.e., UCO Bank, Bank of Maharashtra, Central Bank of India, Punjab & Sind Bank, Indian Overseas Bank, and Bank of India.
Let’s have a look at the stock performance as well as the recent financial results of the Banks mentioned above:
UCO Bank
With a market capitalization of Rs 47,094.52 crores, the stocks of UCO Bank are currently trading at Rs 39.39, slipping 1.10 percent as compared to the previous close of Rs 39.83 apiece.
In the past year, the Bank’s stock has delivered multibagger returns of approximately 165 percent to its stakeholders, i.e., if someone would have invested Rs 1 lakh into the Bank’s stock a year ago, it would have converted to Rs 2.65 lakhs.
During the recent financial quarters, the Bank reported an increase in its total income as well as net profit numbers with the former marginally shifting up from Rs 5,856.95 crores during Q1FY23-24 to Rs 5,865.61 crores during Q2FY23-24, and, the latter, during the same time horizon, moving up from Rs 223.48 crores to Rs 401.67 crores.
Bank of Maharashtra Limited
With a market capitalization of Rs 32,538.91 crores, the stocks of Bank of Maharashtra Limited are currently trading at Rs 45.95, slipping 0.90 percent as compared to the previous close of Rs 46.34 apiece.
In the past year, the Bank’s stock has just turned multibagger delivering returns of approximately 101 percent to its stakeholders, i.e., if someone would have invested Rs 1 lakh into the Bank’s stock a year ago, it would have converted to Rs 2.01 lakhs.
During the recent financial quarters, the Bank reported an increase in its total income as well as net profit numbers with the former shifting up from Rs 5,417.87 crores during Q1FY23-24 to Rs 5,735.54 crores during Q2FY23-24, and, the latter, during the same time horizon, moving up from Rs 882.49 crores to Rs 919.75 crores.
Central Bank of India Limited
With a market capitalization of Rs 40,817.78 crores, the stocks of Central Bank of India Limited are currently trading at Rs 47.02, slipping 0.70 percent as compared to the previous close of Rs 47.34 apiece.
In the past year, the Bank’s stock has delivered multibagger returns of approximately 110 percent to its stakeholders, i.e., if someone would have invested Rs 1 lakh into the Bank’s stock a year ago, it would have converted to Rs 2.10 lakhs.
During the recent financial quarters, the Bank reported an increase in its total income as well as net profit numbers with the former shifting up from Rs 8,218.02 crores during Q1FY23-24 to Rs 8,438.51 crores during Q2FY23-24, and, the latter, during the same time horizon, moving up from Rs 428.01 crores to Rs 608.63 crores.
Punjab & Sind Bank
With a market capitalization of Rs 28,568.37 crores, the stocks of Punjab & Sind Bank are currently trading at Rs 42.15, a flat movement as compared to the previous close of Rs 42.02 apiece.
In the past year, the Bank’s stock has delivered multibagger returns of approximately 136 percent to its stakeholders, i.e., if someone would have invested Rs 1 lakh into the Bank’s stock a year ago, it would have converted to Rs 2.36 lakhs.
During the recent financial quarters, the Bank reported an increase in its total income as well as net profit numbers with the former shifting up from Rs 2,315.79 crores during Q1FY23-24 to Rs 2,405.89 crores during Q2FY23-24, and, the latter, during the same time horizon, moving up from Rs 152.67 crores to Rs 189.09 crores.
Indian Overseas Bank
With a market capitalization of Rs 77,726.72 crores, the stocks of Indian Overseas Bank are currently trading at Rs 41.12, slipping 1 percent as compared to the previous close of Rs 41.55 apiece.
In the past year, the Bank’s stock has delivered multibagger returns of approximately 105 percent to its stakeholders, i.e., if someone would have invested Rs 1 lakh into the Bank’s stock a year ago, it would have converted to Rs 2.05 lakhs.
During the recent financial years, the Bank reported an increase in its total income as well as net profit numbers with the former shifting up from Rs 21,641.17 crores during FY21-22 to Rs 23,523.42 crores during FY22-23, and, the latter, during the same time horizon, moving up from Rs 1,709.27 crores to Rs 2,103.99 crores.
Bank of India Limited
With a market capitalization of Rs 43,990.23 crores, the stocks of Bank of India Limited are currently trading at Rs 107.20, slipping 0.70 percent as compared to the previous close of Rs 107.94 apiece.
In the past six months, the Bank’s stock has delivered returns of approximately 40 percent to its stakeholders.
During the recent financial quarters, the Bank reported an increase in its total income as well as net profit numbers with the former shifting up from Rs 15,926.04 crores during Q1FY23-24 to Rs 16,779.41 crores during Q2FY23-24, and, the latter, during the same time horizon, staying uniform at levels of Rs 1,490 crores.
Written by Amit Madnani
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