The Nifty PSU Bank Index surged following the finance ministry’s call for increased lending and subsidiary monetization through IPOs and stake sales, outperforming the broader banking sector. While gains may be limited due to bond yields and margin compression, analysts suggest PSU banks could outperform private peers in the near term, citing reasonable valuations and better CASA ratios.
Originally published by The Economic Times https://economictimes.indiatimes.com/markets