Mutual funds equity exposure in banks at all-time high
buy any new shares,” he said.
A combination of good news in the second half of the year helped boost the performance of banking scrips. “Fears of asset quality of banks slowly dissipated as the year progressed, although concerns about non-performing assets of public sector banks still remain. Also, results of several private sectors banks and even NBFCs have been quite positive,” said Chatterji.
And while economic revival — often, one of the keys drivers that boost the performance of banking stocks — has not taken off in earnest, corporate earnings seem to have bottomed out, according to experts.
A spate of reforms on the policy front has boosted sentiments among investors and allayed concerns on the fiscal and current account deficits to some extent. At its policy meet last week, the RBI revised down its GDP growth projection to 5.5% y-o-y in FY13 from 5.8% earlier. The banking sector typically grows at three times the GDP growth rate, said experts.
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