Dipan Mehta neutral on banking space

Dipan Mehta, Member at BSE & NSE told CNBC-TV18, "Broadly we are quite neutral on banks. I think that greater values lies in the NBFCs which also are a play on an economy like the banks. Over there the vehicle financing companies, the likes Mahindra & Mahindra Financial Services or Shriram Transport Finance Corporation and even some of the banks which have got a large pie of the vehicle financing business in their books like say a Kotak Mahindra Bank or IndusInd Bank, those could outperform considering that we are seeing reversal as far as the fortunes of the auto industry is concerned particularly commercial vehicle manufacturers. So, that could be a pocket of outperformance as far as the banks, NBFCs are concerned."

 "However, by and large I think PSU banks, private sectors banks we saw their numbers in the last quarter and except for one or two banks they were not that exciting to say the least. So, even this time around when the results come out in October when should not get too excited about these companies per se. I would say that the NBFCs offer perhaps a better chance for investors to have exposure to this sector and get decent returns rather than focusing on the banks," he added.