21 April : Public Sector Banks has remained a cursed spot since 2010. The RBI policy on writing off NPAs and revelation format has hurt this sector and even when markets touched new highs, banks refused to budge.
However analysts are of the view that most of the pain is left behind and one could start to invest in paced manner. They cite SBI which despite bearish news is back within 10 per cent of its all-time high levels.
NDA govt. has in their three years of power moved much to get public sector banks on their feet. Experts observe that it is slow economy and policy paralysis of UPA rein all these decades that left banks struggling with assets.
The present govt merged smaller banks with large brands to help tide problems and greater power and revised norms to recover NPAs are said to be in the pipeline.
Market indications too are heartening. The difference between NSE PSU Bank Index and NSE Private Bank Index is at its lowest point in the last 18 months.
So slowly and steadily remember to buy in some PSU banks into your portfolio.