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MFs book profits in PSU banks, sell stocks worth Rs 1,800 cr in Q4

Potential in state-owned lenders could be limited in the near-term as most positives are priced in

mutual funds, MFs
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Sentiment about banking shares turned sour in March after the collapse of the Silicon Valley Bank in the US and fears of contagion risk

Abhishek Kumar Mumbai

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Fund managers are withdrawing after a two-year long run in public sector bank (PSB) stocks. Domestic mutual funds (MFs) were net sellers of PSB stocks for the first time in nine quarters, offloading shares worth Rs 1,800 crore in the March quarter, said a report by ICICI Securities.

In the previous eight quarters, fund houses had invested more than Rs 10,000 in PSBs amid deep discounts in valuation vis-à-vis their private sector peers.

Fund managers said the upside potential of PSBs could be limited in the near-term as most positives are priced in and as that happens private banks are

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First Published: Apr 19 2023 | 8:44 PM IST

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