Private banks offer value post correction; PSU outperformance may fade: JM Financial

Ajit Kumar, Head-BFSI at JM Financial Institutional Securities, says HDFC Bank may remain range-bound in the near term amid FII concerns and management uncertainty, despite attractive valuations. He sees deep value emerging in large private banks after the recent correction, with earnings likely to improve in FY27. He prefers private banks over PSU banks as the latter may struggle to sustain returns, with ICICI Bank remaining his top pick.