Do you buy the decline in private banks or uptick in PSBs? Pranav Gundlapalle answers

“Private sector banks are preferred over public sector banks due to factors such as valuation multiples, earnings rebound, and better deposit gathering ability. In terms of HDFC Bank, their Q2 provisional update showed positive numbers, particularly in deposit and loan growth. Axis Bank, on the other hand, is facing weakness along with other banks due to global factors. PSU banks have seen a reversal of favor from institutional investors, as pressure on margins becomes evident. ”