Four PSU bank stocks turn multibaggers in the last two years; Indian Bank gained the most!

Karan Dsij
/ Categories: Trending, Mindshare
Four PSU bank stocks turn multibaggers in the last two years; Indian Bank gained the most!

Credit growth has improved from its historically low levels in recent years. Earnings growth is strongly supported by a healthy recovery from bad debt.   

After almost a decade, India’s financial sector appears to be out of turmoil. Almost all major banks have overcome their solvency concerns and are on their way to growth. Asset quality is improving steadily in most banks despite the disruption caused by COVID-19. Credit growth has improved from its historically low levels in recent years. Earnings growth is strongly supported by a healthy recovery from bad debt.   

In addition, most Tier 1 and Tier 2 bank lending books are stress-tested and well-prepared to withstand most foreseeable adversities. These financial institutions made a lot of progress since the Dirty Dozen (the largest 12 bad loans), which were first announced in the summer of 2017. Eight of the 12 reported accounts were resolved with a recovery rate of 50 per cent or higher. Two accounts are in liquidation while two other accounts' resolution is underway.   

Interestingly, Bank Nifty has outperformed Nifty index by a wide margin, so far in 2022. What’s more surprising is the fact that Nifty PSU banks have outperformed Nifty as well as Bank Nifty!   

So, here is the performance of NSE-listed PSU banks in the last two years: 

Name  

Gains in %  

INDIANB  

193.61  

BANKBARODA  

159.43  

SBIN  

151.71  

CANBK  

126.35  

IOB  

62.26  

UNIONBANK  

41.61  

MAHABANK  

32  

PSB  

16.6  

CENTRALBK  

3.39  

IDBI  

1.91  

PNB  

-2.27  

BANKINDIA  

-7.73  

UCOBANK  

-16.12  

 

Interestingly, 10 out of 13 stocks managed to deliver positive returns in the last two years. Now, here comes the most fascinating thing which would leave everyone spellbound and it's the fact that not one or two stocks but as many as four stocks have turned into multibagger ">Multi-baggers!  

Indian Bank led from the front with gains of nearly 194 per cent, followed by Bank of Baroda and State Bank of India, which jumped 159 per cent & 152 per cent, respectively.  

Meanwhile, UCO Bank delivered a dismal performance.

Rate this article:
4.5

Leave a comment

Add comment

DSIJ MINDSHARE

Mkt Commentary22-Nov, 2024

Mindshare22-Nov, 2024

Mindshare22-Nov, 2024

Bonus and Spilt Shares22-Nov, 2024

Penny Stocks22-Nov, 2024

Knowledge

MF15-Nov, 2024

General15-Nov, 2024

MF14-Nov, 2024

DALAL STREET INVESTMENT JOURNAL - DEMOCRATIZING WEALTH CREATION

Principal Officer: Mr. Shashikant Singh,
Email: principalofficer@dsij.in
Tel: (+91)-20-66663800

Compliance Officer: Mr. Rajesh Padode
Email: complianceofficer@dsij.in
Tel: (+91)-20-66663800

Grievance Officer: Mr. Rajesh Padode
Email: service@dsij.in
Tel: (+91)-20-66663800

Corresponding SEBI regional/local office address- SEBI Bhavan BKC, Plot No.C4-A, 'G' Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra.
Tel: +91-22-26449000 / 40459000 | Fax : +91-22-26449019-22 / 40459019-22 | E-mail : sebi@sebi.gov.in | Toll Free Investor Helpline: 1800 22 7575 | SEBI SCORES | SMARTODR