Time will tell if PSBs are mispriced stocks or a value trap: Analysts

It's also a good sign as Punjab National Bank (PNB) is preparing to raise Rs 7,000 crore this week

When Canara Bank announced its qualified institutional placement (QIP) at Rs 103.5 apiece last week, critics questioned if a public sector bank (PSB) can go to the market by itself. After all, direct market equity sourcing has just been aspirational for a long time and turning to the government for recapitalisation is an easier option for PSBs. But Canara Bank’s successful fundraising has made heads turn. From Rs 94 a share a month ago to a little of Rs 125 now, the stock has surprised investors.

It’s also a good sign as Punjab National Bank (PNB) is preparing to raise Rs