Prefer largecap private sector banks: Fortune Financial

Prefer largecap private sector banks, says Abhijit Chakraborty, Fortune Financial.

Chakraborty told CNBC-TV18, "Within the rate sensitive, I think as far as banking is concerned I think there is some concern which is once again emerging over there apart from concerns of NIMs getting contracted and that is mainly coming from higher crude oil prices." He further added, "If we assume that crude is going to average at USD 120-130 per barrel for this year then the government borrowing from the banking sector is going to be substantially higher than what has been outlined in the budget, which is going to have a crowding out effect not only for other corporate but even the banks are going to suffer because of low yields. So this could be one added concern for the banking space right now which is going to impact mainly the PSU bank. Within the space I would continue to favour the large cap private sector banks."