India’s financial stocks are entering a more selective phase, where the strength of a lender’s deposit franchise, underwriting discipline and execution could matter more than whether it is a bank or a non-bank financier.
Preethi R S, fund manager at DSP Mutual Fund, remains constructive on the sector as retail and small-business credit demand stays healthy and corporate lending shows early signs of revival. With about 73% of the DSP Banking & Financial Services Fund invested in lenders, she sees opportunities across private banks, state-owned banks and specialised NBFCs even as the portfolio builds exposure to asset managers, insurers, exchanges and wealth-management companies to capture India’s financialisation.
