Latest news with #NiftyPrivateBankIndex
Economic Times
17-07-2025
- Business
- Economic Times
Nifty Private Bank Index Fund: Growth backed by interesting return profile
Live Events Performance behind the scenes Low risk, strong core Decoding Nifty Private Bank index Why consider this investment Let's say you want to invest in the power of private banking, but without picking individual stocks or tracking performance manually. An index fund tracking the Nifty Private Bank Index offers: (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel From the warmth of a grandmother's savings to the ambition behind a young entrepreneur's loan, private sector banks in India are at the heart of countless life-changing Nifty Private Bank Index Fund offers a simple, structured, and low-cost way for investors to participate in this quiet yet powerful banking sector has long played a pivotal role in shaping the country's $4-trillion economy. From facilitating credit to expanding access for the underserved, it serves as the lifeblood of financial inclusion and economic Reserve Bank of India's recent liquidity measures are expected to unlock Rs 2.9 lakh crore (about $35 billion), further propelling credit growth Private sector banks are not just participants in India's growth story—they are clear they account for 28% of the Nifty 50's index weight, they contribute a larger 37% share of its profits. This reflects their superior efficiency, stronger balance sheets, and relentless focus on numbers speak for themselves. Net Interest Income (NII) for private banks has seen a staggering rise over the past two decades. They grew steadily from less than Rs 25,000 crore in FY05 to over Rs 350,000 crore by FY25. This isn't just a reflection of loan books, it reflects growing trust, operational scale, and improved Interest Margins (NIMs), a critical efficiency marker, have also remained healthy, sustaining a level above 4% in recent depositors, borrowers, and investors vote with their feet, private banks have gained share in the loan market, from 13% in FY05 to 36% in FY25, and deposit market, where share expanded from 11% to 32% over the same growth dazzles, risk matters. Private banks score well on this count too. Capital adequacy, a buffer that protects banks during downturns, is at an all-time high of 17.29% in FY25, comfortably above the RBI's regulatory threshold (11.7%).Meanwhile, net Non-Performing Assets (NPAs), those numbers that reflect asset quality, are at a 10-year low of just 0.50% compared to post-Covid stressful times of 1.92%. In simple terms, these banks are not just growing, they're also doing so 10-stock Nifty Private Bank Index is a sectoral benchmark that reflects the performance of India's leading private banks. Constituents are selected from the Nifty 500 and ranked based on market capitalisation, with weight caps to avoid over-concentration. Each stock weight is capped at 23%, and the top three combined cannot exceed 62% at rebalancing done index includes household top private bank names. Together, they represent a mix of scale, innovation, and regional a P/E of 17.6 and P/B of 2.4, the Nifty Private Bank index appears reasonably valued compared to Nifty 50, which trades at a P/E of 22.3 and P/B of 3.62. For long-term investors, that valuation gap could hint at potential to Rs 1,000 in April 2005, the Nifty Private Bank Index has surged to Rs 32,683 by June 2025, translating to a 20-year CAGR of over 18.6%, compared to 14.4% for Nifty 50. Over rolling 3- and 5-year periods too, the index has consistently delivered better returns, proving its strength across market every year is a win, but in 6 out of the last 10 calendar years, the index has outperformed the broader market.1) Broad exposure to leading private banks.2) Low cost, since it passively mirrors the index.3) Minimum investment starting at Rs 1,000, making it accessible to everyday investors.4) Systematic investment options, helping build long-term wealth slowly but don't need a demat account. You don't need to monitor markets daily. What you need is a quiet commitment to your future, and to the silent powerhouses that keep India's economy ticking. Take part in the growth behind every swipe of a card, every EMI paid on time, and every SIP transaction made possible by private banks.(The author is Principal - Investment Strategy, ICICI Prudential AMC): Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Time of India
01-07-2025
- Business
- Time of India
NFO Update: ICICI Prudential Mutual Fund launches Nifty Private Bank Index Fund
ICICI Prudential Mutual Fund announces the launch of ICICI Prudential Nifty Private Bank Index Fund , an open-ended index scheme replicating Nifty Private Bank Index. This scheme offers investors an opportunity to invest in a basket of India's private banks, which have delivered fundamentals and supported India's economic expansion, according to the fund house. The new fund offer or NFO of the fund is open for subscription and will close on July 14. Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Sleep Apnea Ruined My Life – Then I Found This Simple Trick Health Insight Undo Also Read | JioBlackRock Overnight Fund opens for subscription. Who should invest? The investment strategy of the fund is to replicate the Nifty Private Bank TRI with a passive approach. Live Events 'Through this product, we offer investors a unique opportunity to access the strength of India's private banking sector in a simple, cost-effective manner. These banks have demonstrated high profitability, robust asset quality, and capital adequacy, making them a potential long-term investment,' said Abhijit Shah, Chief Marketing and Digital Business Officer at ICICI Prudential AMC. Private banks have shown growth in their share of the Indian credit and deposit markets over the past two decades. Loan market share rose from 13% in FY2005 to 36% in FY2025, and deposit market share improved from 11% to 32% over the same period, according to a press release. According to the fund house, why should one invest in this scheme is because it invests in India's top private banks, one of the drivers of the economy, portfolio construction mirrors the Nifty Private Bank Index methodology, Passive structure offers an efficient way to gain exposure, minimum investment of Rs 1,000, with systematic investment options like SIPs and STPs available, and will allow non demat account holders to seek exposure to private bank segment of the market. Also Read | JioBlackRock Mutual Fund: 3 NFOs open for subscription today. Should you invest? The exit load is nil. The minimum amount for daily, weekly, fortnightly, and monthly SIP is Rs 1,000 (plus in multiple of Re 1) with minimum six installments. For quarterly SIP: Rs 1,000 (plus in multiple of Re 1) with minimum four installments. The performance of the fund is benchmarked against Nifty Private Bank TRI and will be managed by Nishit Patel and Ashwini Shinde. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
India.com
22-06-2025
- Business
- India.com
Market Outlook: Iran-Israel Conflict, Crude Oil Prices, FII Activity To Drive Stock Market This Week
New Delhi: The coming week will be crucial for Indian equities, with market sentiment likely to be shaped by geopolitical developments, crude oil trends, and foreign institutional investor (FII) activity. The spotlight is now on the escalating Iran-Israel conflict, especially after the US launched airstrikes on Iran's nuclear facilities, marking its direct involvement in the war. Market analysts warn that any further escalation in the conflict could weigh heavily on investor sentiment. According to Sudeep Shah, Head of Technical Research and Derivatives at SBICAP Securities, the Iran-Israel war is playing a significant role in driving market emotions. 'Currently, the market is witnessing selective strength as investors reassess the risks of a broader regional conflict,' he noted. Crude oil prices have remained elevated after breaching their 200-day EMA last week, although momentum has slowed slightly. Shah pointed out that persistently high oil prices are stoking fears of inflation and potential supply chain disruptions, both of which are key concerns for the market going forward. Despite geopolitical tensions, Indian markets ended the past week on a strong note. The Nifty surged 1.59 per cent or 393.80 points to close at 25,112.40, while the Sensex rose by 1.59 per cent or 1,289.57 points to settle at 82,408.17. This rally was led by the Nifty Private Bank Index, which gained 1.64 per cent. Other sectoral indices also performed well, with Nifty Auto up 1.51 per cent, Nifty IT rising 1.36 per cent, and Nifty Services gaining 1.48 per cent. However, the Nifty Metal and Pharma indices declined more than 1.5 per cent during the same period. Commenting on the Nifty's outlook, Shah said, 'Over the last 28 trading sessions, the Nifty has largely oscillated between 25,222 and 24,462. Notably, 16 of those sessions saw gap-up or gap-down openings, indicating continued market volatility. This pattern suggests limited opportunities for directional trades in the current environment.'
Hans India
22-06-2025
- Business
- Hans India
Market outlook: Iran-Israel conflict, crude oil prices, FII activity to drive stock market this week
New Delhi: The coming week will be crucial for Indian equities, with market sentiment likely to be shaped by geopolitical developments, crude oil trends, and foreign institutional investor (FII) activity. The spotlight is now on the escalating Iran-Israel conflict, especially after the US launched airstrikes on Iran's nuclear facilities, marking its direct involvement in the war. Market analysts warn that any further escalation in the conflict could weigh heavily on investor sentiment. According to Sudeep Shah, Head of Technical Research and Derivatives at SBICAP Securities, the Iran-Israel war is playing a significant role in driving market emotions. 'Currently, the market is witnessing selective strength as investors reassess the risks of a broader regional conflict,' he noted. Crude oil prices have remained elevated after breaching their 200-day EMA last week, although momentum has slowed slightly. Shah pointed out that persistently high oil prices are stoking fears of inflation and potential supply chain disruptions, both of which are key concerns for the market going forward. Despite geopolitical tensions, Indian markets ended the past week on a strong note. The Nifty surged 1.59 per cent or 393.80 points to close at 25,112.40, while the Sensex rose by 1.59 per cent or 1,289.57 points to settle at 82,408.17. This rally was led by the Nifty Private Bank Index, which gained 1.64 per cent. Other sectoral indices also performed well, with Nifty Auto up 1.51 per cent, Nifty IT rising 1.36 per cent, and Nifty Services gaining 1.48 per cent. However, the Nifty Metal and Pharma indices declined more than 1.5 per cent during the same period. Commenting on the Nifty's outlook, Shah said, 'Over the last 28 trading sessions, the Nifty has largely oscillated between 25,222 and 24,462. Notably, 16 of those sessions saw gap-up or gap-down openings, indicating continued market volatility. This pattern suggests limited opportunities for directional trades in the current environment.'
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Business Standard
05-06-2025
- Business
- Business Standard
PSU bank stocks rally on cheap valuation, Q4 boost; will the momentum last?
Despite private banks performing strongly in 2025 so far, the last three months have seen a sharp reversal, with PSU banks taking the lead. premium Tanmay Tiwary New Delhi Listen to This Article Despite lagging behind in calendar year 2024 — with the Nifty Private Bank Index slipping 0.3 per cent, while the Nifty PSU Bank Index surged 13.61 per cent — private sector banks have outpaced their public sector counterparts so far in 2025 (as of June 3). The Nifty Private Bank Index has delivered a gain of 10.35 per cent in CY25, outperforming the Nifty PSU Bank Index which rose 8.30 per cent in the same period. By comparison, the Nifty50 gained 3.79 per cent during the same period. Individually, Kotak Mahindra Bank gained 14.7 per cent, ICICI Bank zoomed 11.6
