Postweek Report (19–23 Mar)

Private sector banks have seen increasing market share with lower increases in NPAs in comparison to PSU banks

Banking Privately

According to data released by RBI, over the last decade, public sector banks (PSB) have been slowly giving up their market share to private sector peers. Since 2007, the market share of public sector banks fell from 72.6% to 68.1%. During the same period, private sector banks improved their market share from 21.5 to 27.8%.

In the last ten years, non performing assets (NPA) of public sector banks increased from 2.8% to 11.8%. For private sector banks, the number increased to only 4.3% from 2.2%.

You can benefit from the trend of fast growth in private sector banks by buying the Banking Privately smallcase. The smallcase has returned 22.14% over the previous 1 year compared to Nifty returns of 10.03%.

Digital Inclusion

You can invest in the theme with the Digital Inclusion smallcase. It has returned 24.91% over the previous 1 year compared to Nifty returns of 10.03%.

Read more about the investment case for this theme in our latest postweek report on smalltalk.