See upside in SBI, DCB: Rajiv Mehta

See upside in State Bank of India (SBI) and Development Credit Bank (DCB), says Rajiv Mehta of IIFL India.

Mehta told CNBC-TV18, "In the PSU space we are cautious and we are following a bottom up approach. We think that  among the larger banks State Bank of India (SBI) would have some steam left to go upwards given the fact that we  have really seen a lot of troublesome quarters in the past. At the same time among the smaller banks we are bullish on  Indian Overseas Bank. We think that it is one of the preferred bets if one has to play a high beta story amongst the  PSU banking space."
He further added, "DCB we continue to be positive and we think the numbers will be good tomorrow. Again there is a  large exposure to bulk funding for that particular bank as well. If you look at sequentially also the numbers have been  improving, the profitability has been improving, so DCB is one bank where we think there could be some upside in the  medium term."