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Last Updated : Sep 17, 2013 05:24 PM IST | Source: CNBC-TV18

Prefer private sector banks over PSU banks: Sanjay Sinha

Sanjay Sinha of Citrus Advisors is cautious on banking space. "If I have to make choices then I would surely pick the private sector banks over PSU banks," he adds.

Sanjay Sinha of Citrus Advisors told CNBC-TV18, "In terms of relative performance, private sector banks as a pack will outperform the public sector undertaking (PSU) banks. But I believe banking as a pack may not perform as long as the outlook on the economy does not clear out."

Sinha further added, "We have seen some bit of that ravage play out in the way both PSU and private banks stocks got battered in the downturn which had taken us down to a level of 17500 on the Sensex and closing levels of about 18500. That outlook continues to remain hazy."

"It is impractical to expect that in a overall economic environment which is not very positive all NPAs will accumulate only in the public sector banks and the private sector banks will be absolutely untouched from that misery. I think that is not likely to happen. As the quarters progress, we will probably see more such disclosures. We have seen that in the last quarter. I think some more will come in the next few quarters," he added.

Sinha further said, "I would become a little cautious on banking as a pack and within that if I have to make choices and if I am forced to do that I would surely pick the private sector banks over PSU banks."

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First Published on Sep 17, 2013 05:24 pm
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