Public Sector Undertaking (PSU) bank valuations are still very supportive, according to Sridhar Sivaram, an expert in the field. The valuations of PSU banks have been a topic of discussion in the market, with many questioning their current levels. However, Sridhar Sivaram believes that the valuations are still attractive given the potential upside in the banking sector. He points out that PSU banks have taken substantial measures to clean up their balance sheets and improve their asset quality. This has resulted in better profitability and improved business performance. Despite these positive developments, PSU bank stocks continue to trade at lower valuations compared to their private sector counterparts. Sridhar Sivaram believes that this presents an opportunity for investors to enter the market and take advantage of the undervalued stocks. He highlights that the government’s efforts to recapitalize PSU banks and the expected recovery in the economy will further support their valuations. Overall, Sridhar Sivaram remains optimistic about the future prospects of PSU bank stocks and recommends investors to consider them for their portfolio.
