Despite banks' record Q1 net profit, Bank Nifty on a slippery slope

It is up 15% since the start of CY21 against 19% in Nifty50; this despite banks' record Q1 profit

The country’s listed banks reported the best-ever quart­erly net profit of nearly Rs 33,000 crore in the June 2021 quarter, up nearly 66 per cent year-on-year. The issue of bad loans that has historically pulled down earnings of lenders also receded into the background in the quarter. But all these positive developments appeared to have failed to impress equity investors.
 
The Bank Nifty index that tracks the market capitalisation of the top 12 banks has turned a laggard after years of outperformance. Banks were a laggard on Monday, as well and the Bank Nifty ended the day with a