About the 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.

Past Performance vs 

Equity Large Cap

1m1y3y5ymaxSIP
Current value of ₹ 100 invested once
at launch

Apr 4, 2016

would be
Banking Privately
₹ 159.97
Equity Large Cap
₹ 202.80
201720182019202020212022100120140160180200220

Note: All performance graphs & numbers are calculated using only the live data and includes rebalances. Past performance doesn't include cost or guarantee future returns.