24 PSU Banks ! ~ Dividend Dynamics ~ Stressed Financials ~ Woeful Valuations
You will find this latest Post today on Scrip Standpoint on my company website quite revealing
Snapshot of 24 PSU Banks ~ Dividend Dynamics,Stressed Financials & Woeful Valuations ~ 05-Jul-2013
After the recent fall in PSU Banking Shares where many lost over one fifth of their market value in just over a month and which we had covered two days earlier as below
- Banks down over 20% in just over a Month ! ~ We had specifically warned on their dangerous NPA Levels ! ~ 03-Jul-2013
we thought it would be an interesting and revealing angle of study to check their
- Dividend Dynamics ~ Dividend Declared ~ Dividend Yield ~ Dividend Payout
- Financial & Valuations
These are Two Separate Tabulations of 24 PSU Banks which display their FY 13 based Dividend Dynamics in the first table and the Financials & Valuations in the second
Check out some observations too that follow and we shall not be surprised if you develop a view that our Government has no Business to be in Business ~ and that includes Banking too ! ~ daresay none of them would pass stringent stress tests
Daresay none of the banks would pass stringent stress tests ~ daresay they would argue that National Interests and Objectives of Financial Inclusion are a strong focus more than just the Bottomline ~ daresay this would be a specious and hollow argument and they have only themselves to blame for what ails them as they pursued to further Corporate Interests and threw caution to the winds,forgetting the lending precautionary basics, when extending loan after loan to the likes of Deccan Chronicles and Kingfisher Airlines and to the private players in the power and infrastructure sector ~ these have all become Non Performing Assets and PSU Banks have required repeated Capital Infusion from the Government to survive and meet Basel Norms
Many of you may see PSU Banks as an Opportunity,even Contrarion, at these beaten down Share Prices & Valuations ~ Fair enough ! ~ yet heed this simple advice ~ Try to develop your Conviction on a Basis other than Emotional or just on pure Intuition and think at least Three Years and not Three Months ! ~ Or else you too may get Stressed just like they are !
Cheers and have a Stress free Weekend !
2 thoughts on “24 PSU Banks ! ~ Dividend Dynamics ~ Stressed Financials ~ Woeful Valuations”
Dear Sir,
Restructuring DISCOMS will give relief to PSU BANKS,and will help them to repair their balamcesheet.
Regards
Anurag
Hi Anurag,The Point is that as long as PSU Banks are influenced and directed in their lending the woes will not really go away ~ many of them depend and survive only on government bail outs ~ of course the reconstruction assets exercise holds out active hope for some recoveries ~ as does the strained sector’s own efforts to improve cashflows