Along with cooperative credit institutions, the Indian banking system consists of public sector banks, private sector banks, foreign banks, regional rural banks, urban cooperative banks, and rural cooperative banks.
Among these, public sector undertakings (PSUs) have long been a focus for many investors looking for reliability and security with lower risk.
Here are four Public Sector Banks that are held by the Life Insurance Corporation of India (LIC) and are under Rs. 100 that have delivered multibagger returns in one year.
Bank of Maharashtra
With a market capitalisation of Rs. 47,381.5 crores the share price of the company moved up by nearly 3.16 percent on BSE to Rs. 67.25 in the trading session on Wednesday, compared to its previous closing price of Rs. 65.19.
It has delivered around 37 percent in the past six months and nearly 160.8 percent of multibagger returns in the last one year. So far, the company has given about 46.5 percent of positive returns in 2024.
The bank’s revenue from operations grew by nearly 25.2 percent YoY from Rs. 4,131 crore in Q3 FY22-23 to Rs. 5,172 crore in Q3 FY23-24, accompanied by an increase in net profit of 33.6 percent YoY, from Rs. 777 crore in Q3 FY22-23 to Rs. 1,038 crore in Q3 FY23-24.
According to the shareholding pattern of December 2023 on BSE, Life Insurance Corporation of India holds around 28.99 crore equity shares, representing 4.1 percent of the stake, in the Bank of Maharashtra.
Bank of Maharashtra is engaged in the business of providing banking services and its segments include treasury, corporate/wholesale banking, retail banking and other banking operations.
Central Bank of India
The share price of the company in the trading session of Wednesday moved up by about 4.3 percent on BSE to Rs. 65.89, compared to its previous closing price of Rs. 63.19 and has a market cap of Rs. 56,964 crore.
As of December 2023, LIC India holds around 22.7 crore equity shares in the bank, accounting for 2.62 percent of the equity stake.
It has delivered around 29.4 percent in the past six months and nearly 165.6 percent of multibagger returns in the last one year. So far, the company has given about 30.6 percent of positive returns in 2024.
In terms of financials, the company’s revenue from operations grew by nearly 16.2 percent YoY from Rs. 6,746 crore in Q3 FY22-23 to Rs. 7,842 crore in Q3 FY23-24, supported by an increase in the net profit of 55.04 percent YoY, from Rs. 476 crore in Q3 FY22-23 to Rs. 738 crore in Q3 FY23-24.
Established in 1911, the Central Bank of India was the first Indian commercial bank which was wholly owned and managed by Indians. The bank’s segments include treasury operations, corporate or wholesale banking, retail banking and other banking business.
Indian Overseas Bank
With a market cap of Rs. 1.26 lakh crores, the share price of the company moved up by 3.7% on BSE to Rs. 67 on Wednesday, compared to its previous closing price of Rs. 64.62.
So far in 2024, Indian Overseas Bank has delivered positive returns of around 53.3 percent. On the other hand, in the last six months, it has given positive returns of nearly 41 percent and about 192.2 percent of multibagger returns in the last one year.
The bank’s revenue from operations grew by nearly 22.2 percent YoY from Rs. 5,057 crore in Q3 FY22-23 to Rs. 6,180 crore in Q3 FY23-24, accompanied by an increase in the net profit of 30.5 percent YoY, from Rs. 555 crore in Q3 FY22-23 to Rs. 724 crore in Q3 FY23-24.
The Life Insurance Corporation of India holds nearly 22.8 crore equity shares or 1.21 percent of the equity stake in the Indian Overseas Bank.
Indian Overseas Bank was founded in 1937 with the main objective of specialising in foreign exchange business in banking to take the Bank across the globe.
UCO Bank
According to the shareholding pattern of December 2023 on BSE, Life Insurance Corporation of India holds around 14.8 crore equity shares, representing 1.24 percent of the equity stake, in the bank.
With a market cap of Rs. 68,101 crores, the share price of the company moved up by 4.08% on BSE at Rs. 57.3 in the morning trading session of Wednesday, compared to its previous closing price of Rs. 55.05.
The company has delivered about 124.02 percent multibagger returns in the last one year and positive returns of nearly 28.7 percent in the last six months. So far in 2024, it has given positive returns of around 42.2 percent.
In terms of financials, the company’s revenue from operations grew by nearly 20 percent YoY from Rs. 4,627 crore in Q3 FY22-23 to Rs. 5,552 crore in Q3 FY23-24, while the net profit fell by 23 percent YoY, from Rs. 653 crore in Q3 FY22-23 to Rs. 503 crore in Q3 FY23-24.
UCO Bank is a commercial bank founded in 1943 and is engaged in providing a wide range of banking and financial services including Retail Banking, Corporate Banking and Treasury Operations.
Written by Shivani Singh
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