Why should you invest in this smallcase?

Private sector banks and NBFCs have been growing rapidly and are seen as an integral part of the Indian financial system.

  • Since the initiation of banking reforms in 1993, old and new private sector banks have been giving tough competition to government banks
  • Private sector banks have outperformed their public sector peers in multiple parameters like growth of bank network, productivity measures like profit per employee, management efficiency, capital adequacy, asset quality and liquidity
  • NBFCs have also played a key role in the development of the infrastructure sector and in providing credit to customers in unbanked areas
  • NBFCs have been growing in the mortgage business as well, competing with commercial banks
  • Other secular trends like low credit penetration in India compared to other economies and low NBFC credit as percentage of GDP provides huge opportunity for NBFCs to grow

This smallcase comprises private banks and NBFCs that are an advantageous position compared to government banks, which have been suffering from low profitability and high amount of bad loans.

Know how this smallcase was created

Created by smallcase Research

Past PerformancePerformance vs 

LumpsumSIP
LumpsumSIP

Current value of Returns on ₹ 100 invested once 4 years ago would beare

smallcase97.15%
₹ 197.15
NIFTY Smallcap17.93%
₹ 117.94
smallcase
97.15%
NIFTY Smallcap
17.93%
Comparing:  smallcase with NIFTY Smallcap
1m6m1y2y3y4ymax
JulyOctober2016AprilJulyOctober2017AprilJulyOctober2018AprilJulyOctober2019April100120140160180200220