Macquarie warns: Sell Bank of Baroda, PNB, Canara Bank; SBI for hedge.

• Macquarie advises 'tactical short' on Bank of Baroda, PNB, and Canara Bank shares.
• SBI is suggested as a hedge position amidst potential weakness in other PSU banks.
• The brokerage believes strong H2 performance is already priced into PSU bank valuations.
• New ECL norms, weak recovery, and falling NIMs are expected to pressure PSU banks' Return on Assets (ROA).
• PSU banks' current 1% ROA is likely a peak and fully priced in, limiting future upside.

Why It Matters: Macquarie advises selling PSU bank shares, citing limited growth and new risks.