Here are the Reviews for Punjab & Sind Bank,
IIFL has the following recommendation,
With CAR at 13%, PSB is well poised for a brisk balance sheet growth. Further, tie-ups with Aviva (for life insurance), Bajaj Allianz (for general insurance) and UTI MF (distribution of mutual fund product) should shore up its fee based income. While uncertainties over fresh pension liability remains; strong GoI parentage, dominant presence in North India, particularly in Punjab, and healthy returns ratio are the key positives. SUBSCRIBE
Hem Securities, MF Globla have a SUBSCRIBE recommendation as well.
IndiaBulls Recommendation,
Healthy asset quality, strong growth in asset base, higher return on net worth, PSB’s long track record of operations of over 10 decades and its established position in northern India, makes this issue quite attractive. If the PSB sets its issue price at upper price band, issue offers an upside potential of more than 22%. We have valued the bank at 1.33x its FY10 BV and recommend Subscribe” to the issue with target Price of Rs.140.
Sushil Finance said,
Considering its post issue paid up equity, at the higher band (of Rs. 120), the stock is available at P/ABV of 1.1x Sept’10 adjusted book value. The bank is well placed among its peers in terms of operating efficiency, asset quality & margins. We assign a “A” Rating to the IPO and recommend our investors to subscribe the Issue due to its strong business growth, good regional focus, strong liability franchise, High ROE and attractive pricing.
Angel Broking has the following views,
The bank’s peers are trading between 0.9x and 1.1x FY2012E ABV; while at the upper end of the price band (`120), the bank will trade at 0.8x FY2012E ABV. Valuing the bank at 1.0x FY2012E ABV would imply 21% upside from the upper end of the price band. Hence, we recommend a Subscribe to the issue on account of the relatively cheap valuations.
Edelweiss concludes the analysis report with the following recommendation,
Compared to other regional PSU banks, PSB has strong operating/profitability metrics in terms of RoA (~1.1%), ROE (~30%) and PAT/employee. Concerns remain on bank’s ability to: (a) sustain NIMs at current levels (3%+) in rising interest rate scenario, and (b) manage asset quality as the bank shifts to CBS-based NPL recognition. We expect bank to grow its loan book at 1.4x the system growth and deliver ROA of ~1% and ROE of ~24% over FY11-12. At the upper band of INR 120, dilution will be book value neutral; the stock is available 1.06x H1FY11E adj. book (~30% discount to peers). We find valuations attractive and recommend ‘SUBSCRIBE’.
