Current price is close to the real time NAV

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 been generating better price return than bank FD

Return vs FD Rates

Not a good time to invest, ETF is in overbought zone

Entry Point

Heads of Public Sector Banks (PSBs) will meet on Wednesday to review progress on financial inclusion schemes like Jan Suraksha, Mudra Yojana, and PM SVANidhi. The meeting, chaired by Financial Services Secretary M Nagaraju, will also focus on the StandUp India Scheme and various insurance-driven initiatives.

Finmin to meet heads of banks on Jan 15 to review financial inclusion schemes

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

Indian equities seesawed through gains and losses to close lower for the second consecutive session as financials, pharma and energy stocks weighed.

Stock Market Today: Sensex, Nifty End Week With 2% Decline; PSU Banks, Realty, Drag While IT Bucks Trend

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

The rupee weakened to a record intraday low of 85.93 per dollar on Thursday, closing at 85.848 per dollar, nearly unchanged from the previous day. Pressure on the rupee was due to risk aversion toward the US dollar and selling from foreign portfolio investors. Intervention by public sector banks curbed excess volatility in the currency.

Dollar sales by private banks help Rupee recover from lifetime low

Nuvama maintains a defensive portfolio, overweight in private banks, insurance, and sectors like pharma and cement, while underweight in industrials and PSU banks due to potential downgrades. CLSA favors commodities and insurance, while underweighting IT and industrials. CLSA also increased its focus on staples, adding Tata Motors, NTPC, Nestle, and Britannia, and removed HDFC Bank from its portfolio.

Dark clouds loom! Q3 results could mark a downgrade hattrick for India Inc

On Monday, there was a sudden drop in banking stocks. It was after a long time that both private and public sector banks saw a sharp decline. A cursory look suggested it was a sectoral trend. But a closer look suggests it had to do with business updates from just three banks – HDFC Bank, Union Bank, and Bank of Baroda. Because the overall mood is bearish, the street ignored the fact that, at least in the case of Bank of Baroda, the updates were not bad. But as banks are highly owned by FPIs, you cannot rule out a further drop if there is any more selling by FPIs. However, given that banking is a sector where valuations are still reasonable, there is a case to be bullish in times of volatility.

These 8 banking stocks can give more than 28% returns in 1 year, according to analysts

The government has urged public sector banks to improve their debt recovery strategies. Banks are examining the legal feasibility of consolidating cases to streamline recovery efforts. A review will be held by the end of the fiscal year to assess progress. The aim is to reduce case pendency and optimize recovery processes.

State banks told to avoid appeals at multiple debt recovery tribunals

Recent declines in the stock market present a buying opportunity, as fundamentals have not changed. Investors should have their purchasing lists ready. Earnings may moderate, and valuations might need adjustment. Expect some global uncertainties and impact on currency. Wait to invest in PSU banks, instead opt for niche sectors like housing finance NBFCs and power finance companies.

Keep the shopping list ready or stay away from the market? Daljeet Kohli answers

All the 12 sectors on the NSE ended lower, with the Nifty PSU Bank declining the most by 4%.

Stock Market Highlights: Investors Lose Rs 12 Lakh Crore As Sensex Slumps Over 1,200 Points, Nifty Tanks 1.6%

NIPPON INDIA ETF PSU Bank BeES objective is to provide returns that, before expenses, closely correspond to the total returns of the securities as represented by the CNX PSU Bank Index