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ICICI Prudential Mutual Fund has launched ICICI Prudential Nifty PSU Bank ETF, an open-ended exchange traded fund tracking Nifty PSU Bank Index. The ETF will reflect the performance of 12 PSU bank companies which form a part of the index.
In a press release, Chintan Haria, Head – Investment Strategy, ICICI Prudential AMC said, “Over the past decade, PSU banks have undergone a transformation on account of their improving efficiency, customer centric approach, technological superiority and improving risk management frameworks. As a result, since 2018, net NPAs have fallen by over 65% while capital adequacy ratio has risen by almost 15%. This improvement is reflected in equity market as well, with the Nifty PSU Bank TRI delivering better returns than both Nifty 50 TRI and Nifty Bank TRI over the last few years.”
In 2022, while there were broad-based gains in the banking pack, it was public sector banks that led the rally, said the fund house.
