MFs up the ante on private banks, increase weight to nearly 21%

Fund managers expect well-managed banks to grab higher market share

Mutual funds (MFs) have increased their weight on private banks to a new high of 20.8 per cent in September. With some of the players in the financial space facing heat on their loan exposures, money managers are of the view that better-run private banks are poised to corner higher market share.  

Private banks are the top sector holding for MFs, followed by non-banking financial companies (8.9 per cent), technology (8.7 per cent), consumer (8.4 per cent), and capital goods (7.8 per cent), showed a report by Motilal Oswal Financial Services.

“More efficiently-run banks are likely to see increased market