October-December quarter for the banks is seen as by far the worst season.NPAs of public sector banks increased in the quarter, mostly due to higher provisioning either losers or their profit has declined.The three state-owned banks were the only ones whose performances have been fantastic. For the quarter ended December 31, PSU 21 NPAs of listed banks and 15 private 4.38 lakh crore to Rs 3.4 lakh crore has been reached.
At present, state-owned banks are not good for investment
Blue Ocean Capital CEO accomplished Mehta Pradrshnh only 3 state-owned banks to the luxurious base of the banking sector should not.Currently, investors should stay away from PSU banks. Just may fall in banking shares.The bank did not say that because someone has their full provisioning but banks to increase provisioning further said.Banks' profit in the next quarter will remain under pressure.
NPAs in Q3 increased loss of 12,000 crore to public sector banks
NPAs in Q3 increased losses of the public sector banks stood at Rs 12,000 crore.October-December quarter, the bank incurred a loss of 3,342 million, most of which is yet to be any official bank's quarterly loss.The IDBI Bank Rs 2,184 crore, Bank of India lost Rs 1,505 crore.Also in Q3 UCO Bank incurred a loss of Rs 1,497 crore. 1,425 crore loss of Indian Overseas Bank and Dena Bank recorded a loss of Rs 663 crore.
500 million less than the losses in banks Allahabad Bank Rs 486 crore, Rs 425 crore, OBC, Syndicate Bank and Corporation Bank Rs 383 crore to Rs 120 crore loss. Altogether these 11 public sector banks reported a loss of Rs 12,000 crore.
While public sector banks, including State Bank of India saw a sharp drop in profit. SBI's net profit declined 61.6 per cent in the October-December quarter at Rs 1,115 crore recorded.2,910 crore in the same period last year, SBI had profit.While the bank's net profit fell 93 per cent to Rs 51 crore.
3 state-owned banks increased profits
Vijaya Bank, Bank of Maharashtra and Punjab and Sind Bank are the three banks whose profit boom.55.6 per cent of Bank of Maharashtra in Q3 profit stood at Rs 89 crore, 40.6 per cent, while Vijaya Bank net profit of 52.6 crore.Job & Sind Bank recorded a net profit of Rs 21 to 70 percent.
PSU banks to invest in the long-term
PSU banks' provisioning figures in the next quarter will continue. 2-3 years in terms of investments in the banking sector would be beneficial.October-December 2016 and January-March 2017 quarter, the bank stocks are likely to see.By then would have to clean up banks' balance sheets substantially. Provisioning of banks will be reduced to 2-3 years.Banks are expected to fluctuate in the short term, therefore, do not invest in banking stocks for short-term, or may incur losses.
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