The Value Case for Indian Public Sector Banks in 2026

As global markets hit new highs in May 2026, a quiet value opportunity is emerging in Indian public sector banks. With loan growth outpacing private peers, bad loan ratios at multi-year lows, and the government stepping back from equity dilutions, these state-owned lenders are trading at just 0.7 to 1.2 times book value. Lucas explains why investors like David Herro and hedge funds have started accumulating positions, while Luna questions the governance risks inherent in state ownership. They discuss the specific case of State Bank of India, which has returned over 20 percent annually for three years yet still trades below intrinsic value, and whether the 'value up' reforms India is pursuing could unlock further gains. A deep dive into an overlooked corner of emerging market value. #IndianPublicSectorBanks #StateBankOfIndia #ValueInvesting #EmergingMarkets #DavidHerro #IndianEquity #PublicSectorUndervaluation #PunjabNationalBank #BankOfBaroda #CanaraBank #ValueUpReforms #NarendraModi #IndiaEconomy #Finance #BusinessPodcast #FexingoBusiness #LongTermPicking #EmergingMarketValue Keep every episode free: buymeacoffee.com/fexingo