Banking - Public Sector banks (PSBs)

Banking sector in India is in early stage compared to US and Europe. This may be due to high regulations from time to time by the central bank. There is a strong thrust for rural and retail banking roping on pro-agriculture governmental reforms and growing middle class population. Big underpenetrated market holds big opportunity for existing PSBs with good number of branches and also have strong regional presence. Indian Overseas Bank, Allahabad bank and Andhra Bank are best bet in this sector based on their rising net profit and organic growth compared to other PSBs.