Buy IndusInd Bank with a long term view, says PN Vijay, Portfolio Manager.
Vijay told CNBC-TV18, "IndusInd would continue to be a long term buy. The private banks in the last quarter have really gone out and bought deposits. They paid very high rates of interest on the savings and fixed deposits and even though they are lending at pretty smart rates the NIMs are showing some compression."
He further added, "They have been traditionally not getting into consortia of power and infrastructure and capital goods because they don't have the type of long term money that an SBI or a Bank of Baroda has. So they have kept out all the raw tucks going around in the banks. So the private banks would be generally having better balance sheets and IndusInd is one of the well managed ones. We have to look for valuations; you can't get these banks to be trading at a Hindustan Unilever type of valuations, so at sometime valuation base selling is bound to come into these new private banks."
