Street continues to be wary of PSBs

Most public sector banks (PSBs) are still trading at a deep discount to their book value, even after rallying sharply after the government announced a Rs 2.11-lakh crore recapitalisation plan in October.

According to data, of the 20 PSBs, only State Bank of India (SBI), Bank of Baroda (BoB), Punjab National Bank (PNB) and Indian Bank are currently trading slightly above their book value. On the other hand, a dozen of PSBs are even valued less than half their book value. Lingering concerns over asset quality and lack of clarity on a capital infusion plan are seen as the reasons.