 "Structural reforms to boost PSBs is also the need of the hour to improve operational efficiencies and lending practices")
Even after a record rally in public sector bank (PSB) stocks since the announcement of recapitalisation plan, analysts covering the sector sees more upside as they believe the financial health of the PSBs will soon improve, triggering a re-rating of these bank stocks.
The analysts, however, see more value in larger PSU banks as the risk of equity dilution lies more in small and mid-sized PSU banks.
Since the announcement on October 24, the Nifty PSU Bank index has rallied over 23%, as compared to just 1% rise in the benchmark Nifty50 index, ACE Equity data show.
Among individual stocks,
