Nifty PSU Bank soared 28 per cent on YTD basis; find high dividend yield-paying PSU bank stocks here!

Valuations look enticing as most PSU banks trade below their book value. Banks are now reasonably capitalised and credit growth should accelerate.

After a slippery start to the week, the bulls are back into action as Nifty and Sensex climbed 0.51 per cent each. Nifty is hovering settled around 17,622 mark while Sensex closed above the 59,100 mark.   

The majority of the sectors were seen trading in green; however, the show-stopper of the day is Nifty PSU Bank. It jumped over 2 per cent on Monday while on a YTD basis, the index is up by a staggering 28.26 per cent.   

PSU banks are an attractive play on the growing Indian economy as these banks have strengthened their balance sheet by fully providing for stressed accounts. The focus on improving underwriting practices is reflected in controlled slippages. FY22 results demonstrate business strength, improved yield profile with healthy PCR, strong liability franchise, improved core operating profitability along with better asset quality matrix thereby, leading to an improved return ratio profile.   

Valuations look enticing as most PSU banks trade below their book value. Banks are now reasonably capitalised and credit growth should accelerate. Margins will continue to hold or increase in higher interest rate cycles.   

So, here are PSU banks that offer an attractive dividend yield. Besides, we have also mentioned the price-to-book (P/B) ratio in the last column. 

Note: Dividend yield is calculated at the current share price of each stock.