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.

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Factsheet 

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Created by smallcase Research

Past PerformancePerformance vs 

NIFTY

one timemonthly sip
one timemonthly sip

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

smallcase84.86%
₹ 184.86
NIFTY55.37%
₹ 155.37
smallcase
84.86%
NIFTY
55.37%
Comparing:  smallcase with NIFTY
1m6m1y2y3y4ymax
2016AprilJulyOctober2017AprilJulyOctober2018AprilJulyOctober2019AprilJulyOctober100120140160180200220

Past performance doesn't guarantee future returns & is inclusive of all rebalances.Download chart