Deepesh Pandey overweight on private sector banks

Deepesh Pandey, Head - Investments, IIFL Capital is overweight on private sector banks.

Pandey told CNBC-TV18, "Banks have two distinct segments. Private sector banks are doing extremely well while credit growth is slower, asset quality performance has been extremely impressive and banks which are focused on retail credits especially HDFC Bank and IndusInd Bank have shown very strong growth in that segment. So, clearly one strategy is to be quite overweight on private sector banks because asset quality performance is very good over there."
He further added, "Government owned banks, there are issues in terms of asset quality, slippages, restructuring etc. I’ll be much more selective, I would still buy 1-2 names over there because valuations are looking very attractive in that segment. Most of the stocks are quoting below book value. Some of them offer very good dividend yields. So over next 3-6 months, I would accumulate 1-2 government owned banks and be quite overweight on private sector names because they keep on delivering well in any kind of environment."