PSU Bank Mergers: 'Valuations Are Extremely Attractive' Amid Government's Reform Push

The government is once again revisiting its mega reform agenda for PSU banks. From 26–27 public sector banks earlier, the number has already been consolidated to 14, and now the aim is to reduce them to less than 10. A smaller number of stronger banks means better regulation, robust balance sheets, and larger loan capacity to support India’s infrastructure push. market Expert Mayuresh Joshi highlight that valuations of PSU banks remain highly attractive compared to private peers, with improving recoveries, lower write-offs, and legacy deposits providing stability. Banks like Bank of Maharashtra and Bank of Baroda have already reported impressive numbers, making PSU banks a hot sector to watch.