Buy IndusInd Bank, target of Rs 507: Rajiv Mehta

Rajiv Mehta, Banking Analyst at IIFL told CNBC-TV18, "We think that IndusInd Bank is one of the better banks to play or to invest from the near-term to medium-term perspective. It has got a less exposure to project loans and to infrastructure loans."

"I think the cost-volume-profits (CVPs) has been raising concerns, but going by the commentary of the bank that the worst is over as far the delinquencies in the commercial vehicle (CV) segment is concerned, we take that comfort. Especially at the current valuations where it has corrected from the levels of 3 times to about 2.5-2.2 times we think that the downside again for even IndusInd is pretty limited. And from a longer-term perspective, it is a buy for us with 12-month target of Rs 507," Mehta said.