PSBs' valuations still reasonable despite 162% jump in Nifty PSU Bank index in less than 2 years: Report
Considering PSBs’ valuation history, their trading multiples may look constrained now; however, the quality of earnings, growth outlook, and broader re-rating in public sector enterprises (PSEs) will enable steady performance for the sector, the brokerage added.
The decline in bond yields, along with continued improvement in credit costs (barring SBI), will support healthy profitability,” added the brokerage