Abhijit Chakraborty of Edelweiss Capital is maintaining overweight stance on PSU banking sector.
Chakraborty told CNBC-TV18, "Banking has been one sector where we have been bullish so far. We have been continuing to maintain that the public sector banks are not going to be affected as much by the deterioration in the asset quality or the fear of NPAs (non-performing assets); the numbers are going to be pretty good. This quarter they are definitely going to benefit because of the gains on the bond portfolio and so far that is what it has panned out to be."
He further added, "Going forward also we would like to maintain overweight stance on PSU banking sector. Typically whenever there is a downtrend in the interest rate in the overall economy, PSU banking sector will continue to outperform the private space because of the fact that they have a higher bond portfolio."
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