Stake needs to be cut down in PSU banks

New Delhi: With the arrival of the Narendra Modi led NDA government, a coalition that is widely seen as supporter of free market, the benchmark BSE index has gained by one-third since the day year 2014 began. Keeping up with the Joneses was the CNX PSU Bank index, which soared by half.

But, investors, both retail and institutional, want Finance Minister Arun Jaitley to come up with more effective measures, so that our economy especially otherwise laggard PSU Bankex’s health improves.

 

A sizable number of bank stocks are presently trading much below their price to book value ratio in the ongoing fiscal. However, there are some which received much required fillip from the incoming capital from developed nations and hence, re-bounded to new highs, simultaneously pulling up Bankex.

Nevertheless, Modi led government still needs to do much more than what the UPA I and UPA II together accomplished. Expectations are huge, so are the challenges.