Public Sector Banks being overhauled by Government: Is it a right time to buy PSB's shares

All the Public sector Banks are going through the tough time especially when RBI came with AQR exercise last year. Almost all the banks (PSB) were in loss in March 2016.

Their share price were also not unaffected by this exercise. But after that there is a constant effort by the Government and the regulator(RBI) to revive the Banks and slowly banks are recovering also and so have their shares.

In fact most of the tax saver mutual funds have given return upto 30-50% in last one year. One of the main reason is that almost all of them invested around 30 % in Banking Sector. Nifty Bank have also given around 35 % return in last one year.

We think that still there is lot of improvement required in PSB's and Government is also regularly coming with new schemes and ideas, hence investment in this sector will continue to give the good return in future also.