Jan 13, 2017 03:50 PM IST | Source: CNBC-TV18

Positive on private sector banks: Dipan Mehta

Dipan Mehta, Member at BSE & NSE has a positive view on private sector banks.

Dipan Mehta, Member at BSE & NSE told CNBC-TV18, "IndusInd Bank clearly was an eye opener as far as private sector banks were concerned. If IndusInd Bank was able to traverse through all the uncertainty and all the various issues post demonetisation the way it did and there is hope then the other private sector banks also will follow suite. So, I think those numbers have rekindled interest and definitely reduced fears as far as the banking sector is concerned and private sector banks in particular." 

"Keeping that in mind, we are quite positive on whole host of private sector banks and that is where investor should look at increasing their exposure and their holdings. PSU banks, let us just give it a wait for this point of time because you don't know how they have managed this demonetisation impact. That NPA problem and how debt has got worsen or has improved that also needs to be seen," he said.

At the same time, I think, if private sector banks are able to manage demonetisation as well as they have done then there is certainly hope and scope for even the NBFCs, the private sector NBFCs to come out with decent set of numbers."

"So, on the whole I think IndusInd Bank numbers have certainly kind of rekindled interest in the entire banking financial services sector which had been underperforming right from November 8. That could be the turnaround sector and again banks would take leadership which is very positive per se for stock market."

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