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    Asad Shaikh in News

    26 Feb 01:30 PM


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    PSU banks’ valuations still reasonable despite sharp re-rating, says Motilal Oswal; SBI, Union Bank among top picks

    The combined profitability of six public sector banks, including State Bank of India (SBI), Bank of Baroda, Punjab National Bank (PNB), Union Bank of India, Indian Bank and Canara Bank, is expected to surpass ₹1 lakh crore in FY24.
    The equity shares of public sector banks (PSU Banks) have seen a sharp outperformance, with the Nifty PSU Bank Index alone delivering 162% returns since March 2022, overshadowing the 24% returns of the Nifty Private Bank index over the same period.

    The aggregate market capitalisation of PSU banks has increased from ₹5.3 lakh crore in March 2021 to ₹17 lakh crore in February 2024. Meanwhile, the market cap of private banks over the similar period has grown just 43% to ₹30.4 lakh crore in February 2024 (despite the HDFC-HDFC Bank merger).

    Source - MInt