Time to consider a few public sector banks

On the flip side, resolution process could entail banks to take a haircut in their exposure to loans

A lot of the opinion on public sector bank (PSB) stocks of late has been skewed towards why they don’t make sense for investors. But, recent data points suggest fund managers may have disregarded this opinion.

Data suggest they have been buyers of PSB stocks since September 2016. Fund managers have increased their holdings in State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda (BoB) and Canara Bank by 0.5-1.17 per cent in this period. This suggests fund managers may have seen early signs of asset quality stress peaking. The March performances (Q4) of Canara Bank, Union