Surge in market valuations may give PNB, three other PSBs largecap status

Elevation expected during reclassification by Amfi next month

Public sector banks Punjab National Bank, Canara Bank and Union Bank of India are primed to enter the mutual fund industry's list of largecap companies after a strong run in their stock prices caused a spike in average market valuations in calendar year 2023.

Indian Overseas Bank and LIC-owned IDBI Bank could also make the cut when the Association of Mutual Funds in India (Amfi) releases the revised list early next month, according to an IIFL Securities report.

Two of the smallcap public sector banks (PSBs) —  Punjab & Sind Bank and Bank of Maharashtra —  are also likely to