Motilal Oswal positive on banking space

Manish Sonthalia, VP Fund Manager, Motilal Oswal AMC is positive on the banking space.

Sonthalia told CNBC-TV18, "We remained positive on the banking space as a whole in the medium-term. I think some apprehensions on deteriorating asset quality in the medium-term is what is seeing some sort of profit taking in the banks, but as you know the analysts have actually built in a better asset quality in this financial year compared to the last financial year."
He further added, "Now we have faced with a rising interest rates scenario whether that translates into worsening of asset quality. I mean this is not apparent just yet, Bank of Baroda saw some increase in slippages on a sequential basis, 14% to be precise, but I think there are some apprehensions on increased losses in the telecom space etc but the benefit