Jhunjhunwala bullish about state-owned banks, says they are undervalued

There will be run up in stock when government disinvests its stake, says investor.

Ace investor Rakesh Jhunjhunwala on Thursday said he is bullish on the banking space and particularly the state-owned enterprises.

“I am bullish on the banking sector. Within that, the most-undervalued are those in the public sector space. The credit cycle has turned. There is a lot of demand for money. Cost to income ratio will come down. Public sector banks (PSBs) are hopelessly undervalued,” he said.

Jhunjhunwala, one of India’s well-known individual investors, was speaking at the India Economic Conclave organised by the Times Network.

He said he won’t rule out 5-10 times gains in state-owned banks over the next five years.

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