China raise rates. May be they are worried about inflation over there. But RBI is confident that we can handle all that money flowing into India. Since that money is going into Coal India IPO it's getting into pockets of common consumers . I get it ...

Banking is sector in fence at these time.

While retail loans are more lucrative business for Banks , high CRR limits them to loan big projects in infrastructure sector. Banks are asking RBI

a) CRR exemption for infra loans

b) Cosider infra loans as Priority sector advances

If RBI can accept these proposal it can boost banks profitability and free up capital to be landed to other sector and retail.

At market cap of 7 B , PNB is highly reasonable stock with good franchises across India. I think the stock is very well priced and there is huge upside on this stock in 5 years .

I see market cap hitting 20B $ in 3 years that means market price of 2700Rs/share in 2013-14.

More number of banks in range of market cap more than 5000 cr in last fiscal. Big ones likes SBI, ICICI, HDFC, PNB and BOB are hitting high notes in market cap north of 15000cr. That's more than 3B dollars. Does current profit justify these valuations ?

Months after dismissing State Bank of India's special loan scheme as a gimmick, mortgage player Housing Development Finance Corporationhas decided to follow the country's largest bank.

HDFC  said all new home loan applications filed till the end of January
could avail of its dual-rate offer, under which the interest rate would
be 8.25 per cent up to March 31, 2012.

News URL:  http://business.rediff.com/report/2009/dec/02/perfin-hdfc-offers-dual-ra...

http://www.business-standard.com/india/news/icici-home-bad-loans35-fold/...

http://economictimes.indiatimes.com/News/News-By-Industry/Banking/Financ...