Irani negative on banking space

Mehraboon Irani, Centrum Broking is negative on banking space.

Irani told CNBC-TV18, "I have said this more than 3 months ago that I am negative on the banking sector be it public or private especially on public very negative. I had said that the concerns are for real, and not many of us are able to understand one thing as to how much further this will continue. They may look attractive in terms of simple parameters like price to book value, and such things. The fact to the case is that we will be around the same ratios even possibly a month or two or three months later, and people will just wonder as to what is happening with the portfolio. Unfortunately many of us buy a stock just because the stock has come down sharply without realizing that the stock deserves to come down and as deservedly come down. So I remain negative."

He further added, "In terms of some of the traditional parameters by which you value banking stocks, some of them may look very interesting and very appealing and possibly may induce some people to buy. This concerns are going to stay for quite some time to come and if I had to take a short at any private bank today, only thing which appeals to me is HDFC Bank, which is at Rs 900 to Rs 910 and a beating of about 11% the stock has taken today and I believe there is value in this particular stock because we have tracked this stock a little bit closely. I am quite confident the company will go at least 25% at the current year and taking other parameters into account I personally feel there is value in HDFC Bank while I don’t want to comment anything positive on the entire private banking sector other vise."