While retail investors might be swept up in the FOMO frenzy, Indian banks took a strategic leap. Their equity investments soared by 49% in FY25, showing
a calculated move towards diversification in the market.
Banks' Strategic Shift
In FY25, banks increased their equity investments by a substantial 49%. This shift was a strategic move, unlike the retail investors' approach driven by fear of missing out (FOMO). This strategic allocation by banks highlights a calculated approach within their treasury operations, diversifying their portfolios.
Investment Numbers Surge
The collective investment in stocks across 16 major banks, representing 90% of the lending market, reached an impressive ₹49,572 crore. This remarkable increase highlights the scale of the banks' investment strategies. The data underscores the banks' confidence in the equity market during the fiscal year.
ET's Market Analysis
An in-depth analysis by ET provided the insights into the banking sector's investment decisions. It meticulously examined the investment behaviors of 16 major banks. This analysis shed light on the banks' approach towards portfolio diversification and strategic investments in the equity market.
