Prefer IndusInd Bank, Yes Bank: PN Vijay

PN Vijay, Portfolio Manager told CNBC-TV18, "The PSU banks have been a bit of a disappointment actually. I was rather enthused with the way Punjab National Bank kicked off. However, what we have had in the last two days have been really shocking, Bank of Baroda, Bank of India and Dena Bank which means that the asset quality of PSU banks is not improving at all. So, one would take away that portion of the midcap banks that leaves the private sector banks."

He further added, "People are getting overweight though yesterdays crash has taken off some of the cream. I would still stick to the tried and tested private sector banks not because their growth is fantastic, not because their net interest margins (NIMs) are great but because their asset quality is very high. So in the pecking order I guess IndusInd Bank continues to be about the best followed by Yes Bank where the profitability is a bit less and so on. So that is where it is. It is a small menu card out there but the way the PSU banks have performed, I am not all enthusiastic about bottom fishing in those banks."