Check out: 3 pvt sector banks Tulsian is bullish on

In an exclusive interview with CNBC-TV18, SP Tulsian of sptulsian.com says he prefers private sector banks and does not see much downside in those stocks from hereon. He also says that he is not positive on oil marketing companies.

Here is a verbatim transcript of his comments. Also watch the accompanying videos.  On banking sector We have the fear on the margin contraction that probably the Net Interest Margin (NIM) will not get maintained. The rate hike that might happen can lead to a shrinking credit growth against the estimated about 20% or so. However, when you have been taking a call on the growth of the economy the banking sector has to grow. Whether the PSU banks or the private sector banks, both have corrected much more than what they deserve. In last 15 days, there has been huge deposit inflow coming to the bank which they will be placing or will be lending that also. Overall, if I need to pick on the banking sector, it would be private sector banks. I will pick Axis Bank at this levels or Yes Bank at these levels and also ICICI Bank. If I need to choose in the larger PSU banks, it could be State Bank of India and Canara Bank. In the midcap PSU space, it could be Punjab and Sind Bank and Vijaya Bank. You need to have a time horizon of six months to a year on all these stocks. I don