Mutual Fund managers seem to be bullish on bank shares as they raised their allocation in the sector to an all time-high of over Rs 1.2 lakh crore at the end of February, primarily on account of cheaper valuations.
In comparison, fund managers had allocated Rs 71,864 crore for bank shares in the year-ago period.
"We could be getting close to the bottom of the NPAs (non-performing assets) cycle, valuations were not that expensive, hence funds could have preferred buying into the sector," says Nilesh Shetty, Associate Fund Manager, Quantum Mutual Fund.
