Rakesh Jhunjhunwal said that after the end of the epidemic, the contribution of public sector banks in economic recovery will be huge.
SBI and Canara Bank will perform out in public sector banks.
Big Bull and Indian Warren Buffet Rakesh Jhunjhunwal said that after the Corona epidemic, the contribution of public sector banks will be very important and their shares will perform well. In a special conversation with Money Control, he said that after the end of this crisis, credit growth will accelerate and the shares of public sector banks will see a boom. In the stock of 12 public sector banks of the country, he has described State Bank of India and Canara Bank as his favorite stock.
Jhunjhunwala said that at this time credit growth is close to 6-7 per cent, which is expected to reach 15 per cent. He said that this year India’s economy will register a growth of 10 percent. In 2022, this growth rate can be 6-10 percent. SBI and Canara Bank have done well in the March quarter.
Canara Bank targets up to 190 rupees
Canara Bank reported a net profit of Rs 1011 crore in the March quarter. The bank had a loss of 3259 crores in March 2020. Net interest income grew by 18.57 per cent to 24062 crore in the financial year 2020-21. Currently, Canara Bank’s stock is trading at a level of Rs. 151. The highest level in 52 weeks is 174 rupees. LKP Securities has advised to invest in this stock and has set a target price of 190 rupees.
SBI share target crosses Rs 600
The result of SBI has been excellent. The bank has seen an 80 per cent jump in net profit in the March quarter. Since the results, brokerage firms have given strong signals about the performance of this stock. According to a report published in the Economic Times, Motilal Oswal has raised the new target price for the State Bank of India to Rs 530. Brokerage firm CLSA has increased the target price to Rs 650. Earlier his target was 600 rupees. Morgan Stanley has reduced the target price for SBI to 600 rupees. Goldman Sachs has given a new target of 648 rupees. Nomura has this target of 550 rupees. JP Morgan has increased the target price from Rs 450 to Rs 515. In this way, according to the estimates of all brokerages, the average SBI share price can reach between 550-600.
Banks will be re-capitalized
Apart from this, the brokerage firm also says that the government will re-capitalize banks by selling stakes in asset management company, housing finance company and insurance companies. This will increase liquidity in banks as well as improve asset quality.
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