PSU banks are value destroyers!

If you consider a 10 year or even a 15-year perspective, smaller public sector banks are value destroyers. It's only in the last two years that the cleanup process has finally caught up with them. However, over the past one and a half years, they have witnessed some positive performance. The PSU story has been overdone, overhyped and oversold. If you have a choice between a PSU and a private player in the same sector, always go for private player. The valuation of the private player is typically higher due to their inherent flexibility and operational excellence, therefore opting for the private player will be more rewarding.