The company manages around £10bn in stocks under its £30bn investment portfolio.
Telegraph quoted Hermes Investment Management Equities team member as saying that the organization had not considered many banks as worthy of being invested in over the past few years.
"A lot is starting to change now, but they are still regarded as a sector to avoid – from a sentiment perspective, there’s a chance to pick up value.
"With Royal Bank of Scotland (RBS), it’s less clear what the plan is; there are still a number of outstanding litigation issues and they are still looking to offload Citizens stock. The picture is much murkier, but potentially the more interesting story."
The UK Chancellor of the Exchequer George Osborne had recently announced the government’s decision to sell more of its shares in RBS despite the sale making losses from the £45bn bail-out at the current share price.
While many had criticized the move, Osborne had defended the sale saying this was the ideal time for the bank to reconstruct itself as a commercial bank.
