Business News›Prime›Markets›SBI or Canara Bank: Upside likely, but investors need to cherry-pick PSU banks ahead of poll rally.

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SBI or Canara Bank: Upside likely, but investors need to cherry-pick PSU banks ahead of poll rally.

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Synopsis
Some PSU banks have outperformed the benchmark as well as many large private sector banks, thereby entering the radar of mutual funds. PSU banks are becoming efficient, but it is prudent for investors to be cautious and selective. Investors are hoping that state-owned banks will take learning from post- and pre-pandemic periods constructively.

Value investor Prashant Jain was early to bet on State Bank of India (SBI). Since 2016, HDFC Top 200 (rechristened as HDFC Top 100), a fund managed by Jain in his capacity as the chief investment officer (CIO) of HDFC AMC, started accumulating shares of SBI. By June 2020, the fund’s stake peaked at 3.72%. That was the period when the banking system was in the middle of a clean-up of bad loans following an asset quality review initiated by the

( Originally published on Dec 20, 2023 )