One sector where the street has been giving differential treatment for many years has been the banking space. Right from PSU banks to small finance banks to private sector banks and even in the private sector banks, there has been a different treatment to different sets of banks. But recently the divergence in valuation has been narrowing down, at all levels. Whether it is between private and public sector banks or even intra private banks segments. There are two underlying factors for it, first, over the years, technology which was a strong point of large private sector banks has been to an extent implemented by other banks also. Second, different banks take care of different segments of the economy, some retail, some large corporate, some SME and retail. So when all segments of the economy are doing well, there is a greater likelihood that all banks will see better performance. We look at banks from three segments of the banking sectors, large players which don't make headlines every day but have seen better performance.
