Relatively positive on ICICI; Axis Bank will remain under pressure, says SMC's Siddhart Purohit

Yes Bank's bad loans have surged in the quarter ended September 2017.

In an interview to CNBC-TV18, Siddharth Purohit of SMC Institutional Equities shared his views and outlook on the YES BANK’s Q2 numbers.

Quantum and magnitude of divergence has been much higher than what anybody would have expected, he said.

Prudently making higher provisions may have been a better move by Yes Bank, he added.

Business growth has been fairly strong, much higher than the industry, that trend is likely to continue. So fairly strong operating performance but disappointing on the asset quality front, said Purohit.

On ICICI Bank, he said ICICI Bank had a much lower divergence compared to larger banks, so not much of negative could be seen in ICICI Bank. We are relatively positive on ICICI Bank but cannot give a target price, he said.

Axis Bank will remain under pressure, Purohit added.

For full interview, watch accompanying video...