Stocks To Buy: 8 Beaten Down Public Sector Banking Stocks Near 52 Week Low

Banking sector as a whole has nearly come out of its asset quality woes and likewise at the start of the year 2022 was gaining vigour but now amid weak global sentiments, with the Indian markets seeing relentless correction, the banking pack has also not been left behind. In comparison to the Nifty which on a YTD basis has fallen by 7.6%, Nifty PSU Bank is still faring far better with a cut of 1.6%.

Nevertheless, some of the stocks from the Public sector bank space are very close to their 52-week low.

Stocks To Buy: 8 Beaten Down Public Sector Banking Stocks Near 52 Week Low

Below is the table highlighting those stocks together with the % distance from 52-week low:

Public sector banking stocks close to their 52-week low	CMP	52-week low price	% gap from 52-week low
Indian Overseas Bank	16.35	15.7	4.14%
Central Bank of India	17.05	16.3	4.60%
Union Bank of India	35.05	32.7	7.19%
Bank of India	43.4	43.15	0.58%
Punjab and Sind Bank	15.35	14.5	5.86%
UCO Bank	11.25	11.05	1.81%
PNB	32.7	31.75	2.99%
Bank of Maharashtra	15.85	15.15	4.62%

Should one buy these beaten down PSB stocks?

Banking stocks can be a good pick at the current juncture considering repo rate hike to tackle inflationary pressure. In the process, the rate hike by the RBI is passed on to consumers as higher lending rate and from this banks tend to prosper. In a more simple away, assets side gains for the banks increase say as in the case of floating rate loans, the interest rate shall head northward and net interest income for banks will then increase. Also there is seen narrowing in provisioning by the banks which also will boost up their profits.

For a more holistic view on which stock to avoid now and which to buy, we need to also check the bank's financials and even their track record say as for Canara Bank which is not in the list above but it marks a sharp turnaround and for the first time in 5 years the bank has also announced dividend.

GoodReturns.in