PSU bank index jumps 21% in 6 months; time to rethink investment strategy?

PSU banks rally 21% in 6 months, outpacing private lenders. Experts say strong earnings and credit growth fuelled the surge. Time to rebalance portfolio? Find out investment strategy in bank stocks

The past six months have handsomely rewarded investors who held bank stocks in their portfolios. The gains were even better – nearly double – for those whose investments were skewed towards public sector bank (PSB) index.

 

Ace Equity data shows that the Nifty PSU Bank index surged 20.6 per cent over the past six months (till September 10) as against a 9.8 per cent rise in the Nifty Private Bank index. By comparison, the Nifty Bank index was up 13.1 per cent and the Nifty50 11.19 per cent during the period.

 

While Indian Bank, Canara Bank, and Bank of India