After two years of a heady rally, the first signs of a slowdown in public sector banks’ revenue growth are now visible. Is it time to sell?
Over the past 12 months, the Nifty PSU Bank index has climbed 93% to 7,295 points on Thursday. This is the best-ever yearly performance of the index ever since it was launched in 2010 to track state-owned lenders. In fact, the stocks of public sector banks outperformed the broader market, with the Nifty 50 index rising just 29% in this period. They also vastly outclassed the private sector-dominated Nifty Bank index, which grew only 16.5%.
The recent exuberance in PSU bank stocks is noteworthy. State-owned banks, which account for 69% of total deposits and 58% of credit in the country, …
Surendar helps lead the newsroom at The Morning Context as executive editor. Over the years, Surendar has worked in industries from pharmaceuticals to diamonds, as well as a stint as an equity analyst. In his long career as a business journalist, he has led teams at The Times of India, India Today and Fortune India. He was part of the founding team at Forbes India and interned at and published in The Times, London.
Executive Editor
surendar@mailtmc.com
Mumbai