Midcap state-owned banks rise on valuations

Reuters Market Eye - Shares in the midcap state-owned banks, including Corporation Bank , gain as dealers cite attractive valuations compared with larger private sector rivals.

Corporation Bank is trading at 0.4 times its 12-month forward book value, while ICICI Bank is trading at 1.6 times, Thomson Reuters StarMine data shows. Corporation Bank shares are up 2.8 percent.

"With markets near record highs, traders are hunting for beaten down stocks, and private banks are quoting at almost twice the valuation of state-owned banks," an institutional dealer said.

Among other gainers, Indian Bank is up 3.6 percent, while Allahabad Bank gains 2.4 percent.

(Reporting by Abhishek Vishnoi)