balram,
i have spotted three banks which are currently undervalued but have grown in profits. PNB, Bank of Baroda and Bank of India .
A few public sector banks appear to have inherent value. Punjab National Bank (PNB) traded at a P/E of 10-13 when its growth was 10-30 % between March 9, 2005 and July 26, 2007. Today, the stock trades at a P/E of 6.3. However, its net profit grew by 51% in FY 2009. Valuations have come down but the growth has gone up, making it an even cheaper stock.
Just like PNB, Bank of Baroda and Bank of India also seem to be compelling buys as their current valuations have not taken into account their faster pace of growth.
i am planning to buy PNB, Bank of Baroda, Bank of India unless anyone of it is a thumb down by savant sir !!!