"Private sector banks are preferred over public sector banks due to factors such as valuation multiples, earnings rebound, and better deposit gathering ability. In terms of HDFC Bank, their Q2 provisional update showed positive numbers, particularly in deposit and loan growth. Axis Bank, on the other hand, is facing weakness along with other banks due to global factors. PSU banks have seen a reversal of favor from institutional investors, as pressure on margins becomes evident. "
According to an ETIG analysis, a sample of 29 banks reported record quarterly aggregate PAT of ₹72,646.5 crore and PPOP of ₹1,29,241.7 crore for the June 2023 quarter. On a year-on-year basis, net profit shot up by ₹67.8% while PPOP grew by 42.3%. Majority of the banks in the sample reported a robust double-digit growth in PPOP and PAT.
The finance minister informed the Lok Sabha that public sector banks (PSBs) will have to take steps to adopt a focused approach on ease of service delivery and customer protection.