Can private bank stocks lead from the front now?
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On June 19, 2024, the Bank Nifty reached a new high of 51,957. This milestone could be just the beginning, with potential for further acceleration and growth. It’s a known fact that due to improved operational efficiencies, the implementation of the Insolvency and Bankruptcy Code and cautious lending practices by PSU banks have significantly enhanced their financials. This has sparked a remarkable rally in their share prices, resulting in 83% gains on a yearly basis. Consequently, the spotlight has shifted away from the country’s private banks. Not only PSU Banks, but many major indices had performed better than Bank Nifty in the past year. Agencies Rewards should reflect the level of contribution. In Q4FY24, Private Banks contributed approximately 20% of the total PAT from the 29 industries in Nifty 50 but only represented 15% of the total market capitalization. This discrepancy indicates that Private Banks are not being rewarded in prop...