Moneycontrol
Apr 20, 2017 01:55 PM IST | Source: CNBC-TV18

Here's why R Sreesankar of Prabhudas Lilladher is underweight on MFIs

In an interview with CNBC-TV18, R Sreesankar, Head-Institutional Equities at Prabhudas Lilladher shared his readings and outlook on market fundamentals.

In an interview with CNBC-TV18, R Sreesankar, Head-Institutional Equities at Prabhudas Lilladher shared his readings and outlook on market fundamentals and sectors.

He said that he has been underweight on microfinance sector. Waiving off of agriculture loans is going to be a dampener to the sector as a whole, he said.

Moreover, lack of credit discipline, non-payments may get extended to MFIs. The valuations too are expensive, said Sreesankar.

Talking about the earnings of Yes Bank and IndusInd Bank, he said the operational performance was strong for them. For Yes Bank he has a target of Rs 1868 and for that of IndusInd Bank it would be at a premium to Yes Bank.

Going forward, the house would remain focused on the pre-provision performance of private banks.

Watch accompanying video for more details.

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