Investment Ideas

SBI- Should you invest in this stock?

There are lots of queries about the valuation of SBI – India’s largest bank by any parameter. The ‘SBI group’ which consists of many subsidiaries and joint ventures both from banking and non banking sectors is the largest loan provider for people and business in India.

According to the SBI’s website (which is not updated) the bank has 4713 branches in India, operates 21,000 ATMs and has 180 offices in 34 countries as on June 30th 2011. Logically, the bank holds high amount of CASA (Current Account Savings Account) deposits which carries lower interest liability. This has helped the bank to give loans at the most competitive rates in India.

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Stock picks for March

Now that the finance minister has made his move, the stock markets have responded with a crash in prices.  Now, it’s time for us to see if there are any good stock picks in the market.

Large caps:

Punjab national bank: We had recommended to buy PNB at Rs 770 and below in November 2012. The stock then rose to Rs 922.10 on 31st January 2013, giving a profit of approximately 20% in 3 months. The stock is now trading at Rs 788 and can be considered for accumulation again.

BHEL: Another stock that we recommended last time was BHEL. At the current market price of Rs 201, we strongly recommend to buy this stock which is trading at an attractive price for investors who are targeting a high return in the long term.

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Stock picks for this Diwali

Here’s sharemarketschool.com’s value stock picks for this Diwali.

Large cap segment:

Punjab National bank: PNB, the second largest bank in India, has been a consistent performer for the last 6 years. Over the years, it has recorded consistent growth in all aspects – Interest revenues, net profits, book value, earnings per share and it has been consistent in paying dividends. The Government of India (56.1% stake) and LIC (14% stake) are the major shareholders. Mutual funds and insurance companies hold a total of 38% stake in the bank.

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Highest interest rates on FD

Hi there,

This post is in response to a reader’s enquiry about the best interest rates for fixed deposits in India right now.

Here are the details-

BELOW 1 YEAR

  • South Indian bank – 10% for 300 days. For senior citizens, 10.50%.

ABOVE 1 YEAR BUT LESS THAN 2 YEARS

  • Lakshmi Vilas bank – 10.50%. For senior citizens, 10.75%
  • Tamilnad Mercantile bank – 10.25%. For senior citizens, 10.50%

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