Suresh Mahadevan positive 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?

Suresh Mahadevan , HOR at UBS Securities is positive on banking space.

Mahadevan told CNBC-TV18, "Our view on banks is generally positive and we have a bias towards the public sector. I think the only bank currently we like in the private space is ICICI Bank but we are quite positive on Punjab National Bank or Bank of Baroda for that matter."

He further added, "My sense is the biggest worry is do banks really under perform in a rate cycle and at least my view on this is that we are going from perhaps very easy monetary conditions to perhaps easy monetary conditions. So to that extent that coupled with economic recovery should result in good credit growth. My sense is investor's worries around non-performing loans will start shifting towards credit growth and that should be generally positive for the sector in the medium-term, so that's why we continue to like. At this point other than ICICI Bank we do not like too many of the others. We are either neutral or negative on things like IDFC or HDFC Bank or even others."