About the smallcase

We would like to see higher credit growth, net interest income and fee-based income from the PSU banks. In the last couple of quarters, a lot of profit growth has come from lower credit cost but pre-provisioning profits or net interest income has remained in single digit and only after it starts to move and we get visibility of double digit type of credit growth, net interest income and fee based income, then some more confidence will come on the sustainability of the earnings. It would result in a re-rating of the price to earnings, price to book and that may result in a very strong rally in PSU banks.

PSU banks are trading anywhere from 0.5 to about one times their price to book and 5 to 20 P/E.

Live Performance vs 

Equity Large Cap

Current value of ₹ 100 invested once
at launch

Mar 29, 2022

would be
₹ 272.32
Equity Large Cap
₹ 111.00

Note: Live performance includes rebalances. It is a tool to communicate factual return information and should not be seen as advertisement or promotion.

Understand smallcase costs and returns

Understand smallcase costs and returns