PSU Banks vs Private Banks: Where's the Real Upside? Mihir Vora
PSU Banks vs Private Banks: Where's the Real Upside? Mihir Vora
Trust MF CIO Mihir Vora breaks down a shift toward PSU and select private banks as credit improves, with NBFCs and manufacturing themes in focus.
In his latest market outlook, Mihir Vora, CIO of Trust Mutual Fund, discusses how the portfolio is being steered toward public sector banks and select private sector banks. The fund is trimming exposures to capital market intermediaries to align with a more balanced cyclicals stance.
Vora argues that credit growth is improving, especially in MSMEs and corporate lending, which strengthens the investment case for PSU banks and narrows the growth gap with private banks.
Beyond banks, he remains positive on NBFCs and flags opportunities in auto ancillaries and domestic manufacturing-driven themes, suggesting a broader cyclical recovery.
He notes market triggers like evolving India–US trade dynamics and fiscal stability, contending that India's structural growth story remains intact and will guide stock selection.
Overall, the message is for investors tracking banking and cyclical plays: the balance of returns may hinge on improving credit, disciplined stock picks, and sector rotation.
Cover image source: Smallcaps, Industrials, Financials: Where Is the Smart Money Moving? | Mihir Vora 🔗
