India’s state-run lenders like State Bank of India Ltd., Canara Bank Ltd., Union Bank of India Ltd., Bank of Baroda Ltd., among others are poised for another round of re-rating, according to brokerage firm Motilal Oswal.
In its note titled “Well Poised for Re-rating 2.0,” Motilal Oswal wrote that the target of achieving 1% Return on Assets (RoA) is now sustainable from being “aspirational” earlier. It also mentioned that the valuations of most of these PSU banks remain attractive even after a rally in 2023.In fact, the PSU Bank index has tripled in value since 2021 and its market capitalisation crossed the mark of ₹13 lakh crore last Friday. The last three years has seen the index…
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