Analysts bullish on PSB stocks next fiscal

STOCKS OF PUBLIC sector banks (PSB) will likely continue outperforming the private peers for a major part of the next financial year, analysts say/

- PIYUSH SHUKLA

The Nifty PSU Bank index has risen 85% in the current fiscal to 6,888.50 points as on March 22, the highest in 14 years. The Nifty Private Bank index has gained 14% in FY24 to 23,452.60 points.

Indian Overseas Bank has been the biggest gainer in the PSB rally, with the stock rising 164%. Shares of Punjab National Bank, Central Bank of India and Bank of Maharashtra have gained 163%, 145% and 141%, respectively, in FY24. State Bank of India (SBI) has risen 43%, the lowest increase among PSBs.

Among private banks, shares of Dhanlaxmi Bank, J&K Bank and South Indian Bank have been the biggest gainers, rising 203%, 166% and 116%, in FY24. HDFC Bank has been the biggest laggard in the private bank space as it fell 10% in the current fiscal. Bandhan Bank and AU Small Finance Bank, besides HDFC Bank, are the only lenders to see a fall in share prices.

What drives PSB rally