Punjab & Sind Bank IPO Message Board (Page 59)

MY Prediction is

QIB 80 times
HNI 120 times
RETAIL 65 times

So do accordingly

Punjab and Sind Bank. has asset quality very strong to proud to be compared to other peee groups. Three four years earlier Bank was struggling with poor asset quality and Gros NPA were to extent of 8% above of its advances. Majority of loans are fully provided and any recovery in NPAs will help to improve the profitability (also help to cover some extnet of lower CASA funds or lower NIMs). North India has seen quite appreciation in real estate prices during four five years and accordingly security cover has improved considerably for its NPA accounts and hence the realisations.

Though Bank has complete haul of IT - CBS Network roll out, which it expects to cover over next two years. CBS network roll out would result into mobilising of higher low cost deposits.


PSB has high productiviy per employee in comparison to other peer Banks, the pension liability would also be on lower side. Other Banks would face higher Pension Liability Outgo.

Plenty of positive in favour of Bank warrants investment in IPO.

Happy Investing, though seems to be on lottery basis also.


regards,

Subba Rao ji,

You are correct in pointing out that allotment even for a FULL application is doubtful. However, IMO if the money is in your savings account, it makes more sense to apply and hope for allotment than to not apply at all. Its not like there is any other good IPO during this period.

I will probably apply for 1 Full and 1 Half application with the hope that atleast one application gets allotment.

(a) Hiking the maximum amount of application to Rs 2.00 lacs without corresponding increase in Retail Quota as well as Hype created by Coal India IPO has obviously lead to very high 32.86 times subscription for MOIL IPO in Retail category.

(b) For PSB, all Experts are holding the view “Invest” only due to sound Fundamentals and attractive Pricing etc.

(c) The Issue size of PSB is just 38 percent of MOIL size.

(d) I am therefore afraid that PSB Issue will be heavily subscribed resulting in poor allotment of just one lot of 50 shares only that too by lottery even to those who opt to apply for maximum lots blocking Rs 1.98 lacs.

(d) 30 percent GMP for PSB is far below 50 percent GMP for MOIL

In view of the above, please advise whether applying for PSB IPO will result in gaining Surplus or only losing Interest

Shreedhar garu,

SBI looks interesting at the current levels. Do you think its worth buying now. I was planning to buy ..say 20 shares but wanted your opinion.

Some say when Banking/Financial stocks come down they indicate some kind of correction. However the temp. bounce back on last Firday may keep the market in green/flat for a little while.

Meeremantaru mashtaru?
Correction tappadu market 5800-5400 levels ki velle ava

Friends,
PSB is the best bank to buy by a distance.Its coming up with extremely attractive valuations.
it has outperformed its group average of the public sector banks as well as all banks’ average for fiscal 2010 on several financial and risk management parameters like return on advances as adjusted to cost of funds, (ii) return on assets, (iii) net NPA ratio and (iv) business per employee.
PSB has a concentration in the northern region of the country (especially Punjab) with about 70 per cent of its 926 branches spread there. It had a CAGR of 38 per cent in advances over 2006-10.
A scoring point for the bank is that the robust growth in advances has not been marred by slippages in asset quality. The gross NPA ratio has shown a decrease during this period. As on September 30, it stood at 0.92 per cent, much better than peers whose GNPA ratios were between 2.25 per cent and 3.5 per cent(Examples of peers Net NPA Vijaya Bank 1.32%,United bank 1.58%,Bank of Maharashtra 2.18%,Dena Bank 1.49% )PSB net NPA is 0.44%.The Banks have recently corrected heavily mainly due to concerns on the increase in Net NPAs due to their exposure to Microfinance Institutions & after recent scam their exposure to realty also.PSB has very limited exposure to commercial real estate and micro-finance sector, which provides great relief.United bank high was 152,it has corrected to 105,Dena bank high is also 150 it has corrected to around 120.So such has been the correction in bank stocks.Now all the banks are fairly valued & discount any exposure to realty & Microfinance.Remember PSB is coming after the banks experienced such heavy correction & after the correction it is still extremely cheap compared to other banks.

Some other advantages:
Provision coverage, at 87 per cent for the first half year, is much above the RBI mandated norm of 70 per cent, implying that unlike several other banks, earnings may not take a hit due to higher provisioning in the quarters ahead.Return on Assets comparison(Vijaya Bank-0.81%,United BANK-0.57%,Bank of Maharastra-0.31%,Dena Bank-1.09% & PSB-0.98%)
Business per employee is the highest compared to peer banks.
Now coming to 2 MOST IMP PARAMETERS:Book value per share(BVPS),Price per book value(PBV) & PE

Vijaya bank-BVPS-61,PBV-1.54,pe-6.44
United bank-99,1.07,7.71
Bank of Maharastra-58,1.07,7.94
Denabank-101,1.19,5.75

PSB at BVPS of 119 & 30 PE (FY11E) will trade at 1 PBV & PE of 4 which you can see is extremely attractive.
There was a query reg Andhra bank .Andhra bank is trading at 1.61 PBV & PE of 6.25.
When Public sector banks were not rerated United bank came out with its Issue at 4 PE & 0.8 PBV.After r erating of PSU banks PSB is coming up with similar valuations.

The only disadvantage of PSB compared to other Peers is its low CASA(Credit & savings account deposits) which it is trying to rectify.ICICI bank had a similar problem which it has started rectifying & the results can be seen in its good growth in profits.
All the money received by the Bank will be used to shore up its capital.
I had strongly recommended a hold on United bank after the issue & I have reaped the benefit of holding United bank.It had more than doubled in 6 months.

Spacenoxx,
Yes your guess is correct.

All of us should send request to SEBI to increase the retail investors quota otherwise like MOIL where we got only 17 shares, we will keep on investing 2 lakhs in IPOs and get disappointing everytime with little numbers of shares alloted. Punjab & Sind Bank issue is around 400 crores which means we have to expect much lesser number of shares compared to MOIL which had come with 1300 crores issue.

Hello Sreedhar Garu,

I am a regular (spectator) here and I find your commets very helpful.

Naku peddaga trading lo gani investment lo gani anubhavam ledu. Technical Analysis mattuku chala interesting ga anipistundi. Meeremaina manchi books suggest cheste chaala krutagnyudini. Alage meeku veelite me echirunama cheppa galaru. Adedo renduvelani rasaru ..baga vedukutuntame a companyena?

can anybody please explain how this script is better than ANDHRA BANK on the basis valuations and performance comparing the offer price of theis Bank and Market price of Andhra Bank.

Thanking you in anticipation

sreedhar, babu bangalore

It will be better if you both use english as discussion.

Sreedhar, you being a respected member arenot expected to do like this.

Dear Ipofinder @ 202

How can you say that this is cheapest?
Please provide if you have any calculation or comparision.

Thanks in advance.

Plz suggest how will be the subscription for this IPO???

May I request all members here to use only English language? Other languages in english script are not understood by many. This is a common public forum. We should not use it as a personal email id.

Dear Friends on Chittorgarh.com,
MOIL allotment is over. Now let's think about upcoming IPO of Punjab and Sind Bank. Anybody having any concrete facts and figure about this IPO may kindly come up and share. Is the IPO really attractively priced? What is the expected listing price? Is it worth for long term say for a year at least?

Shreedhar Garu,

mee mailID eevandi

Yes, there is 5% discount of all the application of Retail subscription

Apply in this IPO in full load
available at very very attractive valuations
Cheapest PSU bank
will give very very good returns

@198. anoop hatia

You should not apply for two applications for same DP account with same PAN number, so both of your application will be rejected...

got 17*3 in moil. should i hold or sell. when is sci allottment?