Investors should start partially booking profit in shares of public sector banks (PSBs), as state-owned lenders could see margin concerns in the coming quarters, analysts suggest.
While cleaned up balance sheets, and moderation in non-performing assets (NPAs) provides comfort in the PSB pack, analysts believe increased deposit rates, amid monetary policy tightening by the Reserve Bank of India (RBI), may eat into their profit margins going ahead.
"The poor performance of PSU banks over the past decade had led to under-ownership of the entities by high net-worth individuals (HNIs) and institutional investors. Going forward, the pack may continue to do