Company Profile: Government-owned bank based in Mumbai. One of the oldest banks was set up in 1911. Today it is among the top 5 PSU banks. The bank is also a leader in Education loans and home loans.
As a bank, it offers Wholesale and retail banking to its customers. In addition, the bank is playing a vital role in agriculture, Small and medium enterprises, and it also introduced a self-employment scheme. The bank also services many major corporate clients like ICICI, IDBI, UTI, LIC, HDFC, and other major corporations.
Share Holding Pattern i
Financials and Ratio
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Future Prospects: The NPA issue is terrible for many public and private sector banks. It is affecting the Central Bank of India also. The bank enjoys one of the largest Branch networks and is top in total income. But as the bank is not holding any stake in MF or Insurance Company, it is affecting it as it will help them to monetize the branch network.
NPA is so bad that even after provision, it is above 5% of the total Loan Book, affecting Capital adequacy. The worst is it is dependent on Govt. Low ROE and ROA are making things worse. Not so attractive CASA but growing. But still, the market gives it the PBV 1. The reason is the branch network. Four thousand seven hundred twenty-eight branches as of 31 March 2016, out of which 2/3 are among Rural and Semi-Urban areas. A bank is also the leader in Education loans and Housing loans.
Hereafter it is looking to sort out the situation as Textile, metal, infrastructure as big NPA and it is sufficient down. The stock is looking good Buy.
