Private banking space very attractive, says Malkani

Jagdish Malkani, Member NSE/ BSE still prefers private banks. According to him, private banking space is very attractive.

Malkani told CNBC-TV18, “After all State Bank of India (SBI) is a true proxy play on the entire Indian economy and it is the ultimate public sector undertaking (PSU) bank. Of course it has got its plateful problems of bad loans, restructured loans, Kingfisher etc.”
He further said, “However, it has such a large balance sheet so it has the ability to absorb that. But on the other hand, they also get preferential treatment from the government even on capital adequacy ratio, restructured loans etc.”
”If interest rates cuts etc come public sector undertaking (PSU) banks are the first ones off the block obviously led by SBI. So my preference would be State Bank of India and Bank of Baroda (BoB) both in the PSU pack. Having said all that, I still prefer private banks generally. Overall that banking space is very attractive,” Malkani added.