markets
Why Nifty Private Bank has underperformed
Jul 28, 01:07

The Nifty Private Bank index has underperformed the benchmark Nifty50 so far this calendar year gaining only 5 percent to the latter's 13 percent. Even the Bank Nifty, which includes public sector lenders, has gained 11 percent.

The reason for the lacklustre showing is heightened concerns about bad loans following the second wave of COVID-19. Loan growth has also been dull thanks to the lockdowns. These factors showed up in the June quarter earnings of some top banks as well which reported a deterioration in asset quality, especially in sectors such as retail and SME, and higher provisions.

Index YTD