Rajen Shah of Angel Stock Broking told CNBC-TV18, "The new RBI Governor has mentioned that we are going to see big bang banking reforms and foreign banks will be allowed to enter India and also takeover domestic Indian banks. So, banks like Federal Bank, South Indian Bank, Karnataka Bank will be in limelight because if they are allowed to be taken over then foreigners would pay high price for these kind of banks."
Nevertheless, the top most pick at Angel Broking in the banking space is Axis Bank which is quoting at hardly 1.2 times adjusted book FY15, which is almost 60 percent discount to HDFC Bank’s valuation. However, we are refraining from getting into banking in a big way," he added.
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