In the last six months, which sector has attracted maximum foreign direct investment? It has been either banks or financial services. And what is common to this FDI inflow? The money is pouring into relatively smaller entities, or those with troubled pasts. This is happening for a reason. It is an indication that a segment of the banking sector has reached a stage where interest in taking over the entire business has increased. What’s more, the regulators are fine with this. So a sustained re-rating of these entities can be expected.
