Prefer ICICI Bank, SBI: UBS India

One can prefer ICICI Bank and SBI among the bigger ones, says Gautam Chhaochharia, UBS India.

Chhaochharia told CNBC-TV18, "We are overweight banks, we like banks and we also upgraded government banks about a month back. We still prefer, among the bigger ones ICICI Bank, then State Bank of India (SBI) and Punjab National Bank (PNB). Among the midcap names we prefer Federal Bank and even IndusInd Bank."
He further added, "I think from a banking bill perspective it is still early, we have again just like the oil part we have seen these kind of promises hold up for a long time, so I won’t necessarily not bet on that happening in for sure but the progress is definitely there unlike in the past. Even the Reserve Bank of India (RBI) seems to be much more constructive in terms of being planned towards giving out licenses. We do expect when we see the final guidelines coming through that will give us better sense."
"Again you must have seen today as press Mr. Rangarajan talking about giving it out specifically to non corporate’s to begin with. So, there is still some cautiousness which you see in RBI commentary. So, I think the ball is still in RBIs court, so let’s see what happens there."