Top performing PSU banks of 2021

In the Budget 2021-22 announced, the finance minister declared that steps will be taken to privatise two public sector banks and one general insurance company. Recently, PSU Bank stocks are seen rallying on the news that officials of RBI will soon be finalising the potential candidates for privatisation. 

Looking at the performance of indices on a YTD basis, the Nifty Bank index gained around 4.98 per cent whereas Nifty Private Bank index was up by 2.24 per cent. Catching the investors' attention, Nifty PSU Bank index shined by gaining around 13.57 per cent on YTD basis. 

Considering the YTD returns, Bank of Maharashtra recorded highest gain of 81.05 per cent . Following Bank of Maharashtra was Indian Overseas Bank which gained around 47.09 per cent.  

In Q4FY21 Bank of Maharashtra has posted attractive financial performance, on the basis of large recovery in a technically written-off account and a robust growth in net interest income. On the other hand, Indian Overseas Bank has recently approved the issue of equity shares to the government on preferential basis which thereby led to pumping in of capital worth Rs 4,100 crore into the bank.

Following table highlights the performance of top 5 PSU Bank stocks on a YTD basis :-