Stay invested in banking space: Deutsche Equities

Abhay Laijawala, Head Research at Deutsche Equities India advised investors to stay invested in banking space. Deutsche Equities is overweight on the space.

Laijawala told CNBC-TV18, “Overall our view on banks continues to be constructive. We think that in a country like India loan growth will be in the range of about 2-2.5 time real gross domestic product (GDP). And therefore, we should probably see loan growth in the range of about 16 to 18 percent.”
”In terms of the non-performing loans (NPL) cycle as well, we expect that with the return of policies certainty perhaps slippages that we have seen over the last couple of quarters will moderate as we head into FY14. Our preference is for investors to stay invested. In fact, we are overweight the entire financial space primarily the banks and we continue to reiterate that call,” Laijawala added.