PSB merger on expected lines; buy stocks for the long-term: Analysts

Investors need to understand the share swap ratio and the other details of the proposed merger, analysts caution

Analysts have given a thumbs-up to the government’s move to consolidate public sector banks (PSBs). Calling it a step in the right direction, analysts say this merger could be a game changer for the PSU banking space over the long-term. 

While they see the related PSU bank stocks reacting to the development when markets open for trade next week, they suggest only those investors who can hold from a long-term horizon buy into these counters. Investors need to understand the share swap ratio