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MUMBAI: Public sector banks have outperformed private counterparts in the equity market during fourth quarter of FY24 as they gain from govt projects, S&P said in a report.
The market capitalisation of all state-owned banks in list of the country’s 20 largest banks has improved from the previous quarter. Punjab & Sind Bank, Bank of Maharashtra and Indian Overseas Bank have led with gains of 38.4%, 38.1% and 38.5% respectively.Only ICICI Bank and Yes Bank from the private sector showed improvements, with both posting single-digit increases.
According to S&P, PSU banks have gained due to improvement in their financial metrics and Indian govt’s focus on long-term projects, which mainly benefits the state-owned lenders. However, HDFC Bank dragged down the private bank index as the lender comprises around 26% of the index. Market Intelligence data shows market cap of HDFC Bank fell 15.2% in the quarter at nearly Rs 11 lakh crore.
The market capitalisation of all state-owned banks in list of the country’s 20 largest banks has improved from the previous quarter. Punjab & Sind Bank, Bank of Maharashtra and Indian Overseas Bank have led with gains of 38.4%, 38.1% and 38.5% respectively.Only ICICI Bank and Yes Bank from the private sector showed improvements, with both posting single-digit increases.
According to S&P, PSU banks have gained due to improvement in their financial metrics and Indian govt’s focus on long-term projects, which mainly benefits the state-owned lenders. However, HDFC Bank dragged down the private bank index as the lender comprises around 26% of the index. Market Intelligence data shows market cap of HDFC Bank fell 15.2% in the quarter at nearly Rs 11 lakh crore.
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