PSU banks may have the larger market share in bank deposits but private banks are attracting more urban new generation customers. Younger people have experienced the service and systems in the private sector and are preferring them over PSU banks. While the nationalized banks are being shunned by investors, the new generation private banks have been hitting new highs on the back of new initiatives, which include digital technology. This paper attempts to compare the performance of PSU banks and Private Banks in the Midcap funds Investment sector.