MEMBER'S LOGINX
| Login Failure | ||||||||
|
||||||||
| Sign Up | Forgot Password? | ||||||||
Investment in securities market are subject to market risks. Read all the related documents carefully before investing
Claim this guide to see
how we identify high potential
smallcap opportunities for you
- Home
- Outlook Arena
- PSU Bank Penny Stocks
PSU Bank Penny Stocks
The Indian banking system largely consists of public sector banks, private sector banks, and foreign banks, in addition to cooperative credit institutions.
Access to the banking system has improved over the years due to persistent effort from the Government to promote banking technology and promote expansion in unbanked and metropolitan regions.
If you look at the history of the financial world over the last 50-60 years, you will see there was hardly any innovation. This is because traditionally the banking sector is very slow to adopt new technologies.
However, with the rise of disruptive technologies like artificial intelligence (AI), machine learning, and blockchain, the industry is now at the forefront of technological innovation.
Due to this, the banking sector will undergo a massive transformation in the coming years. And the fastest growing entities will possibly be the ones that adapt to this change without compromising on the core of margins and asset quality.
Many banks are investing heavily in their own technology and other startups to catch up with non-banks in the digital banking space.
To draw a stark comparison between PSU and private sector banks, public sector banks in India have suffered poor valuations for decades. At the turn of every economic cycle, these entities are forced to lend vigorously. They even lend to corporates with poor balance sheets.
Their private peers, on the other hand, have stayed ahead and invested in technology to keep up with the changing dynamics. They have showed consistency in lending quality, NPA provisions and profit growth.
As things stand now, the government is employing capital expenditure programs to boost demand. The key is to stimulate growth via a long-term capex measure.
This massive capital outlay bodes well for banks in general. However, the PSU banks are at a slight advantage.
Further, the opportunities are not just limited to the big PSU banks. Even their smaller counterparts can make a breakthrough and get recognized.
If the smaller PSU banks do have a major impact in the future, they could potentially turn into future bluechips.
Here are some of the public sector bank penny stocks to add to your watchlist.
For the entire list of PSU banking stocks, check out our list of PSU banks.
![]()
Is it Time to Shun Capital Goods Stocks?
Jun 1, 2023
Due to sky high valuations, what should you do with these stocks?
![]()
Why Canara Bank Share Price is Falling
May 9, 2023
Most banks have reported a superlative performance in the quarter ended March 2023. What about Canara Bank?
![]()
Why UCO Bank Share Price is Falling
Feb 22, 2023
After reporting highest ever quarterly profit, shares of UCO Bank have hit the wall. Find out what next for this PSU bank.
![]()
Most Profitable Smallcap Stocks to Add to your Watchlist
Dec 24, 2022
Could these smallcaps be the fastest growing companies in 2023?
![]()
These Stocks Can Go Up Just Like PSU Banks
Dec 15, 2022
PSU banks have dominated the return charts recently. But do you know the next big sector that is ready to go up? Find out in this video.
![]()
Is it Time to Switch from Private Sector Banks to PSU Banks?
Dec 9, 2022
Will SBI give better returns than HDFC Bank? Find out...
![]()
PSU Bank Stocks Are Rising. What Next?
Nov 22, 2022
The PSU Bank index has broken out of the falling trendline indicating an end to the 12-year-long bearish trend.
![]()
The PSU Bank Index is Following in the Footsteps of the Bank Nifty
Oct 18, 2022
For PSU Bank index, the multiple breakouts and reversal signals bullish momentum.
![]()
My Contrarian Bet for this Decade
Jul 13, 2022
Looking for a contrarian long-term investment? Your search ends here...
![]()
The Nifty PSU Bank Index is in a Sweet Spot. Time to Buy?
Jun 9, 2022
Charts and other technical indicators are suggesting that PSU bank stocks could move up in the short term.
![]()
Why SBI Share Price is Falling
May 19, 2023
After reporting highest ever quarterly profit, shares of SBI have encountered a roadblock due to these reasons.
![]()
India's Worst Performing Banking Stocks of 2023 So Far
Mar 22, 2023
Questions have been raised on the Indian banking sector amid the global banking crisis. As a result, bank stocks are falling. But is an Indian banking crisis in the offing?
![]()
Why PSU Banks are Falling
Dec 26, 2022
After rallying over 60% in 2022, shares of PSU banks are taking a breather.
![]()
Top 5 PSU Banks By Growth
Dec 19, 2022
Fiercely competing with their private sector peers, these five PSU banks have put up a healthy performance in the past few years.
![]()
Will Gold NBFCs Muthoot and Manappuram Finance Regain their Lustre?
Dec 15, 2022
Gold financing NBFCs are already seeing a surge in demand. Find out how they could perform in the near term.
![]()
PSU Banks Are Hot. 10 Facts to Bring You up to Speed
Dec 5, 2022
PSU Banks have put up a healthy performance in the past few months. But can this trend continue?
![]()
PSU Banks vs Private Banks. Who's Likely to Win as Capex Gets a Boost?
Nov 4, 2022
These banks stand to benefit the most as the public and private capital spending gets a boost.
![]()
Why SBI Share Price is Rising
Sep 16, 2022
India's largest bank, State Bank of India (SBI), recently crossed the marketcap of Rs 5 tn! These are the key reasons pushing SBI share price higher.
![]()
Is this the Bottom for Punjab National Bank?
Jun 23, 2022
Punjab National Bank (PNB) is a huge underperformer. Here's what may happen next...
![]()
Banking Stocks are the Best Trades of the Month
Apr 27, 2022
This is why I think banking stocks are you best bet right now.
ABOUT EQUITYMASTER
Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.
PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
- Multibagger Penny Stocks
- Basics of Value Investing
- Benjamin Graham
- How to Invest in Gold
- How to Invest in Silver
- Best Stocks to Buy Today
- Best Small-cap Stocks to Buy
- Best Bluechip Stocks to Buy
- Guide to Penny Stocks
- How to Invest in the Share Market
- Warren Buffett - The Value Investor
- Pick the Best Multibagger Stocks
TRENDING TOPICS
Copyright © Equitymaster Agora Research Private Limited.
Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap
Equitymaster Agora Research Private Limited (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407
Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com
LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.
Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.