InvestorQ : Are there any PSU banks that are worth picking up after this correction? What are your view on SBI and PNB?
diksha shah made post

Are there any PSU banks that are worth picking up after this correction? What are your view on SBI and PNB?

Answer
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11 months ago
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Let me talk about the PSU banking space first before getting into SBI and PNB specifics. PSU Banking index touched a 15-year low on 19 May and SBI touched a 4-year low.

PSU banks have borne the brunt of fears that the growth slowdown could lead to a spate of defaults and PSU banks could be the most vulnerable.

In the last one month, the PSU Banking Index is down by 20% compared to the Nifty correcting by just 3.7%. PSU banks were also disappointed that the finance minister announced the suspension of IBC and insolvency proceedings for a period of one year, which is credit negative.

While PNB is very vulnerable to NPA problems and best avoided, SBI may still be a good choice if you add up the value of its insurance and card business separately. You are getting banking for a song.



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