This PSU bank stock is 18 months low, traded at a 52% discount from the recent peak. Do you hold? | Einsmark news

The stock market today: Shares of Central Bank of India, a state -run bank, finished in the red on Wednesday, April 2, for the third consecutive session, and fell another 11% to slide below £ 37 and achieve a 18 -month -old £ 36.86 -year -old, with the three -day cumulative drops. The last time the share was at this level was in September 2023. After finishing in the red for the last eight months, and lost 33% of its value, the share extended its loss of loss in the current month and so far fell 14%. At current levels, the share is trading 52% lower than the peak of £ 77 in February 2024. What subtract the share price from the Central Bank of India? The stock has been on a downward spiral since last week when it issued shares to qualified institutional buyers (QIBs) via the QIP route, along with three other PSU banks -Punjab and Sind Bank, Uco Bank and Indian Overseas Bank. Life Insurance Corporation of India has emerged as the top investor in the QIP of shares by these four public sector banks. Other investors in the fundraiser include SBI Life Insurance, ICICI Prudential Life Insurance, IIFL Finance, non-bank lender, a group of pension fund schemes and state-owned banks. All state -owned banks have undertaken this fundraising practice to reduce the government’s shareholding in accordance with the minimum public shareholding (MPS). The government’s interest in all four banks is more than 90%. For example, the Indian government owns an 89.3% stake in the Central Bank of India, with an additional 3.16% held by the Life Insurance Corporation. Foreign Institutional Investors (FIIs) have a 1.3% stake, while general shareholders own 3.6% at the end of December. In January, the government approved a £ 2,000 fundraising plan for five PSU banks to help them meet the MPS requirement, which must give at least 25% public possession. Q4FY25 Preview: What to expect from PSU bank earnings? Domestic brokerage firm Motilal Oswal expects PSU banks to report a modest growth of 4.5% year-on-year (yoy) (4.8% quarter-to-quarter) amid a slight decline in the net interest margins (NIMs), counteracted by controlled operating expenses. The net interest income (NII) is expected to see a modest growth of 2.8% as NIMs remain under pressure. As a result, the brokerage estimates PSU banks will report an annual growth rate of 9% (CAGR) in the total earnings over FY25-27. “Operating expenses are likely to remain under control and should follow a normalized trajectory for PSU banks. Treasury performance is expected to improve quarter-on-quarter amid a reduction in bond returns, although stock markets have remained volatile,” the broker said. On the front of asset quality, Motilal oswal expects stability. “While the Q3 has seen an increase in the SMA (Special Division Accounts) pool for some banks, it is expected to recover without leading to sliding. Consequently, credit costs should remain largely under control. The newly revised norms for selling government guaranteed security receipts (SR’s) must release the additional provisions for PSU banks. Bank of India increased by 33.58% to £ 958.93 in the first quarter of FY25, compared to £ 717.86 in the first quarter of FY24. Year. Catch all the business news, market news, news reports and latest news updates on Live Mint. Download the Mint News app to get daily market updates. Business NewsMarketsstock MarketSthis Psu Bank Stock hits 18 months low, traded at a 52% discount from the recent peak. Do you hold? More less