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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (3923)	3/24/1999 11:12:00 PM
From: Mohan Marette	Read Replies (3) \| Respond to of 12475

Accumulate OBC, the best stock in the banking sector (at 11.00 Hours IST) ORIENTAL BANK OF COMMERCE - AN OUT PERFORMER BUY AT CURRENT MARKET PRICE Key Drivers of OBC Story: Good Revenue from Interest Income Low Non Performing Assets Wide Spread Retail Deposit Base Best Fundamentals in the Banking Sector Profits to grow at 25.8% over the next 3 years Asset Growth 20% Plus Best Cost to Interest Spread Ratio Rapid Branch Expansion and Vision to target Industrial Clients Best Recovery Rates in the Sector Healthy Balance sheet Position Entry into Insurance and Credit Cards should support fees based activities Points which Market Needs To Take into Consideration: OBC due to its establishment in terms of its fundamentals has come a long way from the criticism that it used to face on the quality of its management. The Management of the OBC has established the fact that fundamental strength of the bank can give rise to the re- rating of the bank with in the sector as such. ..... .... the banks Net Profit has grown from Rs.154 Crores for nine months in the year 1997-98 to Rs.187 for the nine months period of 1998-99. Our Projections show a PAT at Rs.251.49 Crores for 1998-99 full year when compared to the full year PAT of Rs.210 Crores for 1997-98. Other Strengths: Valuation bound to improve in the short term with its performance emerging in terms of figures. OBC has come almost out of the negative factors The stock offers a tax free dividend yield of 16% Interest rate cuts to have a minimum impact on the bottomline, as its interest income constitutes 44% contribution from Interest from Fixed Return Investments. ......... - Dr.V.V.L.N.Sastry, Vice President, - Khandwala Securities Ltd Tel. : 264 2300 (O), 528 4590 (R), Fax : 261 5172 (O) Email : ksite@giasbm01.vsnl.net.in, drsastry13@hotmail.com (Courtesy:CMOTS)