Stock Tips: These 3 stocks will show 'Laxmi' the way to your home, why are brokerages bullish on these government stocks?

If you are also looking for earning stocks, then you can bet on three PSU bank stocks. The quarterly results of these banks have been good. Fundamentals are also strong. This is the reason why Canara Bank, Indian Bank, and Bank of Baroda are among the top picks of brokerage houses. Brokerage house Motilal Oswal has given a 'buy' rating to Canara Bank and Indian Bank shares. At the same time, HDFC Securities has advised to invest in Bank of Baroda shares.

Brokerage house Motilal Oswal has advised to invest in Canara Bank shares and has kept its target price at Rs 135. On Friday, Canara Bank shares closed at Rs 105.90 on NSE. In this way, the target price is about 15 percent higher than the current price. The brokerage says that Canara Bank has reported a strong quarter, and earnings have been better than expected. Net interest income (NII) was decent, and expenses were also under control.

Indian Bank Share Target Price

Motilal Oswal has also given a 'buy' rating to Indian Bank shares. On Friday, this bank share closed at Rs 621.50. In this way, the brokerage has predicted a 16 percent jump in Indian Bank shares. The brokerage says that Indian Bank has presented good quarterly results. Loan growth was higher than deposit growth, so the CD ratio (credit-deposit ratio) has increased slightly. The bank management believes that the margin will be between 3.15% to 3.3% and the growth outlook is strong.

Bank of Baroda Share Rating
Brokerage house HDFC Securities has recommended buying the stock of Bank of Baroda and has given a target price of Rs 290. This is 21 percent more than the current price of Rs 235. The brokerage says that the bank's results were slightly lower than expected, due to low growth in fee income and an increase in credit cost.

Deposit growth was around 10% year-on-year, but declined by 2.5% quarter-on-quarter. NIM is slightly weak due to the large foreign loan portfolio (18%) of the bank, yet the bank has delivered better return ratios than peers due to low credit cost and a strong customer base.

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