PSU bank stocks set for a jump in 2019 after a three-year gap: Analysts

The support that PSBs get from loan recoveries will add up as an important component to their financials in 2019

The public sector bank (PSB) stocks seem to have started off the year on a positive note. The government’s commitment to infuse capital, a strong trend visible on bad loan recoveries and favourable bond market conditions place PSBs in a better position to expand their financials more meaningfully. In other words, analysts say 2019 may be a year of growth for a majority of state-owned banks, particularly for the larger ones. They believe that after being favoured purely for their relatively low valuations since 2015, the current year may pan out differently. 

While top names such as State Bank of India