My views on BOM - PSU Banks under PCA framework of RBI like CentralBank, IOB , UCO , PSB, BOI will not supersede BOM as it is not part of the PCA . RBI & Nitiayog are not keen to push these PCA PSU banks as these banks are on steroid after capital infusion of 20,000Crs in last 2 months by GOI . As per SPTulisian, BOM has already got intents in Mar. 2021 from PremWatsa friend of namo, Poonalwala and Bajaj. Meanwhile, none of the other PSU banks has got any suitors so far. It is also Pune based bank and it is a West India focussed bank where there are enough and more than other PSU bank presence to counter its sale and loss of revenue. This is the only bank where employees went on strike when they came to know from RSSHQ that they are getting privatised and subsequently this led to the Left call for the all India bank hartal against privatisation. BOM financial parameters are one of the best after SBI on NII and NPA in the PSU bank category and it is the best bet to achieve the best valuation to start the journey of PSU Bank privatization. Banks posting 2 times and 3 times profit in one quarter is nothing but financial engineering and rehashing of funds. It is very evident when you check their NII which hardly moved. So when a sale of two psu banks happen it is no brainer to assume that BOM will get the the best investor bids and will alway be on premium over the 2nd bank in the list. This would mean that the price of Mahabank will lead the charge in premium percentage margin over the 2nd bank. Market showed that on Friday. Market also indicated that 2nd bank is likely to be IOB as it is closely behind BOM in price-volumes graph and rest of the PSU Bank pack are far behind in price-volume graph. if you have other PSU bank shares please view this post with a pinch of salt. disclaimer - i hold mahabank . please repost this post if you like to share with likeminded.
12.6 Crs of mahabank shares traded on a single day in nsebse on 4th June,2021, with the life time highest-ever volumes and 10 lacs more than the next PSU bank in contention for privatization, which is iob . a of 28.21 which is 9.8percent of the previous close price this is not speculation but the advance leak. now we can see entry of MFs focussed on PSU and PSU banks entering on monday along with FII and DII. only caution is the total percentage is 26%, 40lacs delivery. which translate to only net 11Crs value delivery. so watch out for the delivery percentage, not the delivery qty, it should ideally go up above 70% on Monday