Dipan Mehta positive on banking space

Dipan Mehta, Member of BSE and NSE told CNBC-TV18, "The private sector banks came out with very decent set of numbers for the September quarter despite various challenges which were there in the quarter with all the various measures which the Reserve Bank of India (RBI) took to curtail currency volatility. There was a spike in the debt markets also and wholesale debt funding costs also went up. Despite all these issues by and large private sector banks continued their secular growth as we have seen."

"For long-term I think the preference has to be the private sector banks, but the public sector banks also deserve a mention in the sense that some of them have come out with better than expected results and they are trading at abysmally low valuations whether one considers on dividend yield basis, price-to-book or PE multiple. Overall if someone is betting on the economy improving in 6-12 months down the line then one would get very good return from the public sector banks at least in the short to medium-term and they could be a good trading bet as well," he said.

"One should see the likes of State Bank of India (SBI) and Punjab National Bank (PNB) start moving up and contribute to the upsurge in the index levels per se. So on the whole, positive on both public sector and private sector. Private sector banks more for the long-term and public sector banks may be for the short to medium-term."