Indian banks, particularly PSU banks, have witnessed a revival of interest on expectations of an uptick in economic growth and strong FII flows. In spite of past scams coming back to haunt now, except for a few midcap banks, most large players sailed through the storm (PSU banks up 46% in six months). Private Banks maintained their strong run with 52-week highs being surpassed (private banks up 37% in six months).

ICICIdirect said, "We have raised our target multiples for a few banks with the probability of a beta play on a reviving economy narrowing the gap from peak multiple."

"We remain bullish on a couple of large PSU banks SBI and Bank of Baroda whereas Punjab National Bank remains a beta play. Among private banks, we prefer IndusInd Bank, Yes Bank as beneficiaries of declining system rates in the near term. Among large cap private banks, Axis Bank remains a long term consistent return stock (five year average return of 17% per annum)," it added.

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.