Oct 10, 2024
Bank of Maharashtra logo source:
Public sector banks (PSU banks) staged a remarkable performance for most part of calendar year 2024. This surge was largely driven by improved earnings, better asset quality, and increased investor confidence in government-backed institutions.
These banks also benefited from a positive market sentiment around the Indian banking sector’s role in supporting the country’s economic growth, particularly in the infrastructure and retail sectors. As a result, PSU banks saw significant capital inflows, pushing their stock prices higher.
However, since August 2024, PSU banks have come under selling pressure.
Stocks like Indian Bank, Punjab & Sind Bank, Indian Overseas Bank, UCO Bank, witnessed declines of 5-9% during the month. The Nifty PSU Bank Index, which tracks the performance of public sector banks, has historically struggled in the month…
