PSU bank stocks new darlings of Dalal Street, but how long will they keep this title?

FY23 was the best ever for Indian public sector banks, posting impressive earnings and stock performance, with the banking sector gaining favour for adapting to the digital age, according to market expert Swapnil Shah. The strong gains have seen the Nifty PSU Bank index rise by 65% over the last year, outperforming the Nifty Private Bank index. The public sector banks have a lot of potential for a further upside, with many analysts suggesting Bank of Baroda and State Bank of India as stock picks for FY24. Multibaggers include State Bank of India, Punjab & Sind Bank, and Bank of Maharashtra.