Private banks can grow faster than industry, says UTI AMC's Karthikraj Lakshmanan

In an interview with ETMarkets, Karthikraj Lakshmanan, senior VP and fund manager - equity at UTI Asset Management shared the fund’s take on the banking space, and overall outlook on India.

Private banking is one space where longer-term growth can be faster than industry, and the banking industry itself could grow faster than the nominal GDP.

India seems to be on a strong footing, not just in the near term but from the next 5-10 years perspective, and could be amongst the fastest growing in the top 10 economies due to its population demographics, favourable macro environment and huge scope for increase in per capita income levels.

Within the equities space, largecaps seem still more attractive than mid- and smallcaps at this point after the latter’s outperformance in the last few months.

While equities are slightly more expensive than the long-term average when compared to bond yields, largecaps particularly as a segment, is not really in a very expensive zone. Earnings growth expectations are in double digits, hence, equities still look good from a mid- to long-term perspective.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)