Buy IDFC, advises Prakash Diwan

Prakash Diwan of Altamount Capital Management told CNBC-TV18, "I think IDFC just gets more positive. In fact what really heartening is that the pace with which they have kind of led themselves to this stage without any interruptions, without any litigations and legal issues. ICICI Bank and IDBI Bank had a tougher time doing this, of course those were very different days but the fact that it is happening faster and it is happening at a time when you need a differentiated market for banks and for infrastructure growth. This whole thing of banks being able to buy infrastructure bonds issued by other banks itself is a first step towards segregating that."

"It is great timing and everybody will want to buy IDFC in their portfolio in any case. It is a buy for me, it is just up 10 percent this year, it could be much more. Look at where Kotak Mahindra Bank has led itself by adding just a network nothing much but just an expansion on geography and it has moved from Rs 1100 to Rs 1400. So, IDFC, of course there will be a long wait after that when there is a consolidation but the first spurt once the bank actually happens, people see it in real life I think another 10 percent is very clear in this," he added

"The change in technology also in the last few years the tried and tested technology has brought costs so down, it is going to be very cost effective for them to get operational."