Kotak Institutional overweight on banking space

Excerpts from Bazaar on CNBC-TV18 Watch the full show » Nifty BSE | NSE 10/02/12 Are Mutual Funds betting on Nifty?

Sandeep Bhatia , ED and Head of Sales, Kotak Institutional Equities is overweight on the banking space.

Bhatia told CNBC-TV18, "PSU banking is attractive primarily on valuations. If we assume that we don't have a very sharp rise in interest rates because the inflation is not structural, it is just on the back of low base of last year and therefore the banking sector should continue to see good volume growth in the second half in terms of loans. Valuations in the PSU banking sector make it extremely attractive. In fact it's been one of the core parts of our portfolio on the equity strategy side. So, banking is one sector where we are definitely overweight on."