Investor confidence in India’s private banks remains intact—for now.
Troubled times
Historically, private sector banks have commanded stronger valuations, supported by a diversified investor base that includes private equity investors. However, these banks now trade below their long-term averages, while public-sector banks are marginally above historical levels, compressing the valuation premium to levels last seen around 2009-10, analysts at Kotak Institutional Equities said in an 18 March note.
