Archive · 11 Oct 2026
Should Investors Consider Contra Funds Amid Banking Growth?
Kotak’s Contra Fund has a larger-than-usual share of its investments in banks.
Kurian thinks banks may grow their balance sheets faster.
Reserve Bank of India data shows that loans and deposits are already growing more quickly.
Banks could face pressure on their profits from lending in the near term.
Kurian expects that pressure on margins to ease as banks lend out more deposits.
She also says banks’ costs from borrowers who do not repay are under control.
She sees good visibility on bank earnings next year.
She also says bank shares are valued below their long-term averages.
Kotak’s Contra Fund is overweight on banking stocks.
Kurian expects bank balance-sheet growth to pick up.
Reserve Bank of India monthly data shows loan and deposit growth accelerating.
Near-term liquidity pressure may squeeze bank margins, which Kurian expects to bottom out and improve.
Kurian cites controlled credit costs, earnings visibility for next year, and valuations below long-term averages.
- Who
- Kotak’s Contra Fund and Kurian.
- What
- The fund is overweight on banking, with Kurian citing expected growth and earnings prospects alongside possible near-term margin pressure.
- When
- The outlook refers to the near term and earnings next year; no specific date is given.
- Where
- Banking; no specific location is stated.
- Why
- Kurian expects balance-sheet growth to pick up, margins to improve after a near-term squeeze, credit costs to remain controlled, and valuations to be below long-term averages.
- Fund
- Kotak’s Contra Fund
- Sector position
- Overweight on banking
- Growth indicators
- RBI monthly data shows faster loan and deposit growth
- Near-term risk
- Liquidity may squeeze bank margins
- Margin outlook
- Kurian expects margins to bottom out and improve as banks lend out deposits
- Earnings and valuations
- Kurian sees good visibility on earnings next year and valuations below long-term averages