Less expense ratio implies better returns over the long term

Expense Ratio

ETF has not been able to closely match its benchmark returns

Tracking Error

ETF has not been able to generate better price return than bank FD

Return vs FD Rates

Entry Point

PSU banks outperformed private banks by 120 percentage points over a three-year period, even as they underperformed by six percentage points in the second half of 2024.

Bottoming Of Earnings Cuts Critical For Banking Sector To Do Well, Says Study

Rajat Sharma, Founder & CEO of Sana Securities, shares his perspective on the current market, focusing on new-age tech stocks, FMCG, IT, and private banks. While he expresses caution about stocks like Paytm and Zomato, Sharma highlights promising opportunities in traditional sectors such as FMCG and IT, along with the potential for private banks to perform well in a market recovery. Market Insights

Here’s why Nykaa remains Rajat Sharma’s top long-term bet - Market Insights

While acknowledging challenges in banking like slowing credit growth, Subramaniam noted that valuations in private banks provide attractive opportunities.

Bullish On Private Banks, Cautious On Industrials: UTI’s Vetri Subramaniam

​So, if you see FMCG stocks have not done anything in the last three-four years because that is where consumption has hit the most because of higher GST or whatever may be the reason, but these stocks have gone nowhere.

Private banks like HDFC and ICICI set to benefit when FIIs return: Rajat Sharma

Disrespect to young employees, poor efforts at skill building and low work-life balance are factors

What’s behind high attrition in private banks?

The market is witnessing sectoral shifts, offering distinct opportunities for long-term investors. Nischal Maheshwari, a market expert, believes the banking sector, particularly large private banks like HDFC, ICICI, and Axis Bank, is currently undervalued. Meanwhile, the FMCG sector, especially staples, is expected to benefit from favorable macroeconomic conditions. Additionally, Maheshwari sees recovery potential in the cement sector, while capital market stocks should be approached cautiously until valuations correct. Sectoral Value Investments

HDFC, Axis Bank, FMCG stocks at attractive levels, says Nischal Maheshwari. Should you buy? - Sectoral Value Investments

Nischal Maheshwari believes the banking sector is undervalued with opportunities in large private banks. He is also positive on the FMCG sector, especially staples, and the IT industry. Maheshwari cautions waiting in the MFI sector. Cement is expected to improve in the next two quarters while chemicals remain uncertain. Capital market stocks should be held on to for now.

Banking, FMCG staples in value zone now: Nischal Maheshwari

The Reserve Bank of India (RBI) significantly increased enforcement of penalties on banks in FY24, with public sector banks paying six times more and private banks paying double the previous year. Enhanced vigilance since the near-collapse of Yes Bank has led to heightened surveillance and stricter regulatory actions, including bans on significant lenders.

Penalties surge as RBI cracks the whip on lenders

The quarterly average ticket size of MFIs loan disbursals rose 43 per cent between September 2021 and 2024 to Rs 50 thousand. The report noted high delinquencies among borrowers. Banks opened 5,400 branches in FY24. Loan-to-deposit ratio stabilized at 80 per cent. Private banks outpaced PSU banks in deposit growth. NPA ratio is at a 12-year low.

Loan disbursal to Micro-Finance Institutions rises 43% over 3 years: IIFL Capital

Bank Nifty falls 1% to 49,000, with public sector banks hit harder than private banks; futures show downward momentum.

Bank Nifty Prediction today – January 10, 2025: Bears in the driving seat, consider shorts

Small finance banks face challenges with asset quality and net interest margins, making larger private banks a safer investment option.

Asset quality concerns hit shares of small finance banks

DSP Nifty Private Bank ETF aims to track the performance of the Nifty Private Bank Index, focusing on equity of private sector banks.