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India’s public sector banks are projected to surpass Rs 1.5 lakh crore profits by 2024-25 due to low NPAs and robust credit growth. Asset quality and profitability have improved significantly, though challenges like slower deposit growth and rising digital frauds remain concerns.

A significant milestone awaits public banks in 2024-25; spotlight falls on several key indicators

Bank frauds increased to 18,461 cases in the first half of the current fiscal, with involved amounts rising to Rs 21,367 crore, states RBI data. Private sector banks reported most cases, while public sector banks had the highest amounts involved. Digital frauds involving internet and card transactions rose, stressing the need for stronger monitoring and law enforcement coordination.

Banking frauds rise in H1FY25, amount involved jumps 8-time: RBI report

There is a good chance that several large private sector banks may get their shine back on the street. Yet, it is probably time to look at some other banks which don’t make the headlines often. There is a set of mid-sized banks which don’t have the distribution reach of large, private banks. When it comes to ownership, they are not like PSU banks. They have a different, hybrid kind of ownership, making them sort of quasi-private sector banks. They operate in particular regions, and over a period of time, they have also been forced to clean up their act. They have moved up in the last one year, but that is probably the case with every stock on the bourse. The question is: Can their re-rating be sustained? The answer lies in looking back at what made things happen the way they did.

Small is getting beautiful: 6 small private sector bank stocks with upside potential ranging from 26 to 42% in 1 year

The domestic indices settled slightly lower in the previous session as metals, IT, PSU banks and financials dragged. The 30-share BSE Sensex pack fell 67 points or 0.09 per cent to settle at 78,473, while the broader NSE Nifty index moved 26 points or 0.11 per cent down to close at 23,728.

Jubilant Foodworks, Lupin & Coromandel International: Here’s how to trade these 3 stocks

In a market that continues to trade at high valuations, the one sector with some “valuation comfort” is banking, and that too for both private and public sector banks. However, one factor, which is cost of deposit, continues to bother banks. And the chances are that it will remain a worry for some time. Even so, it may be a good idea to stay medium-term bullish on banks. Except, of course, small finance banks or anything to do with micro finance. Check out Stock Reports Plus, powered by Refinitiv, for price targets of over 4,000 listed stocks along with detailed company analysis focusing on five key components ,earnings, fundamentals, relative valuation, risk, and price momentum, to generate standardized scores. SR+ Reports is a complimentary offering to ETPrime members.

These 8 banking stocks can give more than 33% returns in 1 year, according to analysts

Deven Choksey highlights investment opportunities amid market corrections and anticipates stronger public sector banks if interest rates drop. EMS stocks may be better bought on dips. The pharma sector shows promise with complex generics, while financial markets are poised for growth as the economy aims for $15-trillion market capitalization by 2035-37.

Buy EMS stocks on dips; Budget to decide PSU banks’ fate: Deven Choksey

​The PSU banks they have also seen couple of quarters where the NPA inched up again and then last quarter was a little better for some of the PSU banks, the large ones like State Bank, or even the other banks like Union Bank, J&K Bank, they showed decent numbers last quarter.

Trent’s long-term prospects remain robust despite recent corrections: Neeraj Dewan

I think that dislocation is due for a correction, which means that a private bank space and a select few PSU banks is something that we are reasonably keen on and most exposed to as a fund.

Jigar Mistry outlines key sectors with potential value in a volatile market environment

Vijay Mallya claims banks have recovered over double the Rs 6,203 crore debt adjudicated by the Debt Recovery Tribunal, including interest. He asserts he’s entitled to relief and will pursue it. Finance Minister Nirmala Sitharaman highlighted the recovery of Mallya’s assets, totaling Rs 14,131.6 crores, and other economic offenders’ assets, emphasizing the government’s commitment to pursuing such cases. On Tuesday, replying to a debate on the first batch of Supplementary Demands for Grants in the Lok Sabha, Sitharaman said Rs 14,131.6 crore worth properties belonging to Mallya have been restored to public sector banks. Mallya, who fled to the UK in March 2016, is wanted in India over a default of Rs 9,000 crore that was loaned to esrtwhile Kingfisher Airlines (KFA) by several banks.

Vijay Mallya questions ED’s recovery of ₹14,000 crore, says ‘banks took twice the debt owed’

Finance Minister Nirmala Sitharaman informed the Lok Sabha that the Enforcement Directorate (ED) has recovered assets worth Rs 17,750 crore from fugitives Vijay Mallya, Nirav Modi, and Mehul Choksi. Mallya’s properties worth Rs 14,131.6 crore were restored to public sector banks, while properties of Rs 1,052.58 crore from Modi and Rs 2,565.90 crore from Choksi were also recovered.

ED restored assets worth nearly Rs 18,000 crore from Vijay Mallya, Nirav Modi & Mehul Choksi: FM Sitharaman

Bank Nifty opens lower, public sector banks underperform private peers, futures facing bearish trend with key support and resistance levels.

Bank Nifty prediction today – December 18, 2024: Go short if the support is breached

Mirae Asset Nifty PSU Bank ETF aims to track the performance of the Nifty PSU Bank Index, focusing on public sector banks.