Select Your Language

The PSUs are on the way back with a bang !

The public sector units ( PSUs) are back with a bang after some dismal performances, as the state owned companies are proving to be promising specially those in finances and energies thereby improving their earning growth.
The Bharat petroleum corporation ltd (BPCL), Gas authority of India limited (GAIL),Power finance corporation (PFC),Canara bank ,Steel authority of India (SAIL) and State bank of India (SBI) etc , they all have performed very well by 2% to 8 % .
This change is growth is basically due to four reasons firstly they have focused on banking as well as energy space, secondly due to the optimism in the earning growth due to the positive policy decisions , that is erasing of policy paralysis .Thirdly due to return on Equity , return on capital employed for the PSUs to improve .Last but not the least is the MODI factor who is feeding the right work culture -- no policy paralysis and no policy execution paralysis which has brought the necessary and much desired acceleration.
Next to watch out is the reforms in the mining acts, which thus will remove all bottle necks.