# PSU banks top alpha pick, OmniScience stays overweight on banking 2026-08-22T20:42:07+00:00 | Business & Economy | Indian Opinion Desk Corroboration: 1 independent outlet Portfolio management firm OmniScience Capital has identified PSU banks as offering the highest alpha-generation potential over the medium term, citing clean balance sheets, double-digit growth and significant discounts to intrinsic value. CEO and Chief Investment Strategist Vikas Gupta said the banking sector is "completely mispriced," with PSU banks trading well below intrinsic worth despite delivering double-digit asset and revenue growth. The firm remains overweight across banking, spanning PSU, large private and mid-cap private banks. On the broader economy, Gupta said domestic revenue and earnings remain healthy and GDP growth exceeding 7 per cent is achievable this fiscal year even if West Asia conflict persists. The firm is underweight on consumer discretionary and avoids information technology due to uncertainty over future workforce requirements. ## Indian Opinion Analysis The view that PSU banks are deeply undervalued reflects a broader market trend where government-owned lenders have cleaned up non-performing assets and improved profitability after years of provisioning. Investors should watch whether this valuation gap closes as earnings growth continues, or if governance concerns and government stake sales cap upside. The key signal will be the next round of quarterly results, where sustained double-digit loan growth would validate the thesis. ## Coverage - thehindubusinessline.com Straightforward report of a fund manager's views with no editorialising or slant. This story was synthesised by AI from the source linked above. Tags: banking sector, GDP growth, OmniScience Capital, PSU banks, Vikas Gupta Canonical: https://indianopinion.org/psu-banks-top-alpha-pick-omniscience-stays-overweight-on-banking/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/psu-banks-top-alpha-pick-omniscience-stays-overweight-on-banking/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes. How this brief was made: an AI model read the report linked above and wrote this summary and analysis, which were published automatically. Published briefs are sampled every hour by an automated quality check; the editor verifies its findings and approves corrections, and corrected briefs carry a dated correction line. We do no original reporting. Methodology: https://indianopinion.org/ai-use-policy/