Expect 20% returns in HDFC Bank, IndusInd: UBS

Vishal Goyal, Executive Director at UBS Securities told CNBC-TV18, "We are expecting around 20 percent returns from here on in HDFC Bank and IndusInd Bank; the preferred pick is the consumer lending business, which still remains strong."

He further added, "The non-performing loans (NPL) risk is rising in consumer, but not at alarming level and even if it goes up it will be manageable. But it is more of a relative preference within banking sector that we are seeing lot of pressure on corporate and therefore corporate banks should be avoided and retail banks are the ones who would have good earning profile. If I do the same analysis of stress adjusted earnings and stress adjusted book value growth, we see the highest growth in these two banks. HDFC is the one which we prefer among non banking financial companies (NBFCs)."