Current price is far from the real time NAV

Less expense ratio implies better returns over the long term

Expense Ratio

ETF has not been able to closely match its benchmark returns

Tracking Error

ETF has not been able to generate better price return than bank FD

Return vs FD Rates

Good time to consider, as ETF is not in overbought zone

Entry Point

Jammu and Kashmir Bank Ltd is quoting at Rs 40.8, up 3.82% on the day as on 12:54 IST on the NSE. The stock is up 133.81% in last one year as compared to a 51.32% gain in NIFTY and a 64.52% gain in the Nifty PSU Bank index.

Jammu and Kashmir Bank Ltd rises for third straight session

Central Bank of India, Indian Overseas Bank share prices hit fresh 52-week high on BSE in intraday deals amid reports that government might privatise these two lenders.

Nifty PSU Bank soars 2.5%; Central Bank of India, IOB share prices hit new 52-week highs on privatisation buzz

The main indices pared gains in mid morning trade after scaling record highs. PSU bank stocks were in demand. Positive global cues and strong domestic vaccination boosted market sentiment.

PSU bank stocks in demand

Among the PSU lenders, the Central Bank of India soared 17 per cent to 27.50, whereas Indian Overseas Bank rallied 14 per cent to Rs Rs 27.4. According to some media reports, both the lenders have been shortlisted for privatisation.

Why are PSU banks rallying?

Some of the key proposals include longer tenure for executive directors, hiring of specialists in areas such as NPA management and fast track promotion for high performers.

Govt mulling measures to bolster governance & HR practices in public sector banks

After five consecutive years of posting losses, public sector banks (PSBs) reported net profits in the fiscal 2020-21, supported by windfall gains on their bond portfolio, rating agency Icra Ratings said in a report.Apart from trading gains, the return to profitability was supported by low…

Windfall gains on bond portfolios aided PSBs report net profits in FY2021: Icra

Sectorally, the Nifty PSU Bank index ended 4 per cent higher amid reports that Central Bank of India and Indian Overseas Bank might be privatised

Market Wrap Podcast, June 21: Here’s all that happened in the markets today

Barring Nifty Auto and IT, all sectoral indices ended in the green, with Nifty PSU Bank jumping 4.11 percent and Nifty Realty climbing 2.33 percent.

Gainers & Losers: 10 Stocks That Moved Most On June 21

“With the pandemic recovery now setting in, banks should be able to get into a recovery mode quite swiftly. We have witnessed this in large PSU banks. The smaller PSU ones are catching up right now.”

PSU bank stocks may beat Nifty for next 3-6 months

Central Bank of India, Indian Overseas Bank and J&K Bank share prices hit 20 per cent upper circuit in intraday deals on BSE.

Nifty PSU Bank index zooms over 4%; Central Bank of India, IOB, J&K Bank share prices hit 20% upper circuits

PSU banks reported net profits in FY2021 after five consecutive years of losses, supported by windfall treasury gains, an analysis shows. Higher gains were recorded on the back of relatively higher SLR holdings compared to private banks.

RBI moves, Covid helped PSU banks report first profits after five years

Kotak PSU Bank ETF objective is to provide returns that closely correspond to the total returns of CNX PSU Bank Index, subject to tracking errors

Kotak Nifty PSU Bank ETF

Average daily traded value of the ETF is high

Kotak Nifty PSU Bank ETF

Kotak Nifty PSU Bank ETF

Return vs FD Rates
Fixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If the ETFs price return is lower than this rate, investors are better off investing the amount in a FD

Entry Point
High demand for an ETF increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the ETF

News & Opinions

Jammu and Kashmir Bank Ltd rises for third straight session

Nifty PSU Bank soars 2.5%; Central Bank of India, IOB share prices hit new 52-week highs on privatisation buzz

PSU bank stocks in demand

Why are PSU banks rallying?

Govt mulling measures to bolster governance & HR practices in public sector banks

Windfall gains on bond portfolios aided PSBs report net profits in FY2021: Icra

Market Wrap Podcast, June 21: Here’s all that happened in the markets today

Gainers & Losers: 10 Stocks That Moved Most On June 21

PSU bank stocks may beat Nifty for next 3-6 months

Nifty PSU Bank index zooms over 4%; Central Bank of India, IOB, J&K Bank share prices hit 20% upper circuits

Kotak Nifty PSU Bank ETF

Return vs FD RatesFixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If the ETFs price return is lower than this rate, investors are better off investing the amount in a FD

Entry PointHigh demand for an ETF increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the ETF

News & Opinions

Jammu and Kashmir Bank Ltd rises for third straight session

Nifty PSU Bank soars 2.5%; Central Bank of India, IOB share prices hit new 52-week highs on privatisation buzz

PSU bank stocks in demand

Why are PSU banks rallying?

Govt mulling measures to bolster governance & HR practices in public sector banks

Windfall gains on bond portfolios aided PSBs report net profits in FY2021: Icra

Market Wrap Podcast, June 21: Here’s all that happened in the markets today

Gainers & Losers: 10 Stocks That Moved Most On June 21

PSU bank stocks may beat Nifty for next 3-6 months

Nifty PSU Bank index zooms over 4%; Central Bank of India, IOB, J&K Bank share prices hit 20% upper circuits

Return vs FD Rates
Fixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If the ETFs price return is lower than this rate, investors are better off investing the amount in a FD

Entry Point
High demand for an ETF increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the ETF