He said the investment case rests on the bank’s scale-up, improving operating metrics and declining cost-to-income ratio as earlier infrastructure investments begin to yield benefits. While developments are being monitored, the fund manager said the firm remains holders of the stock for now.
Also Read | Deven Choksey sees value emerging as markets correct, bets on metals, select IPOsOn banking sector positioning, Madon said public sector undertaking (PSU) banks have shown resilience and currently trade at more attractive valuations compared with several private sector peers.
He noted that balance sheets across PSU banks have improved significantly during the current credit cycle. “They are relatively cheaper,” he said, though he emphasised that investment decisions should be made on a stock-by-stock basis rather than a broad sector approach.
According to him, opportunities exist selectively, especially where balance sheet strength and earnings visibility are clear.
Madon said discussions around artificial intelligence (AI) have dominated market conversations, particularly after the sharp correction in IT stocks. However, he said the firm’s conviction in key holdings remains unchanged.Also Read | AI impact on business models key investment theme for next 3–5 years: Ashi Anand
Referring to Intellect Design Arena, a major portfolio position, he said the company’s domain expertise and product focus provide long-term relevance despite industry disruption concerns.
“This doesn’t change anything in terms of our holding,” he said, noting that companies are already integrating AI into products and adapting business strategies.
He added that while markets may face short-term pressure, investors may need to endure volatility during the transition phase.
For new investors entering during the correction, Madon said additional allocation could be considered as valuations adjust.
For the full interview, watch the accompanying video
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