PSU Banks Set For Re-Rating? Deven Choksey Explains Two Key Triggers For Samvat 2083

PSU bank stocks are gaining momentum at the start of Samvat 2083, but can the rally sustain? Market expert Deven Choksey, MD, Dr Choksey Finserv Private Limited, explains the two key factors that could drive a re-rating in public sector banks. Softer crude oil prices and easing inflation expectations could reduce interest rate pressures and limit mark-to-market losses on banks' bond portfolios. He also points to the possibility of a second round of public sector bank consolidation, which could create larger banking institutions and unlock valuation potential. With several PSU banks trading around one-time price-to-book value, Choksey explains why the sector could attract fresh investor interest.