Private banks, housing finance and select private insurance companies still offer secular growth opportunities, says Sanjay Parekh , senior fund manager (equity), Reliance Nippon Asset Management . In an interview with Prashant Mahesh, Parekh, who manages Reliance Banking Fund with assets of ₹3,100 crore, reiterates that the outlook for banks looks better in 2019 and 2020.
Edited excerpts:
What is your outlook for the banking sector?
The size of opportunity in banking is large as India is still an underpenetrated market. Any bank which has a strong franchisee on both asset and liability sides is best poised to take advantage of the upcoming economic recovery. Those with a higher retail book and the ones which are managing risk better have commanded premium valuations.
