Exit Federal Bank, says Ashu Madan

Ashu Madan of Religare Securities told CNBC-TV18, "If you calculate the risk reward in Federal Bank, I don’t see even two-three months or probably holding longer can yield good results. I don’t expect anything, on the contrary I am little jittery. Probably for the results, I would recommend to buy Puts and hold it for some time because I expect a negative quarter for Federal Bank. So, everything put together I will suggest to exit this stock." He further added, "The problem is that the other banks which we like, if somebody is a small investor, it is very difficult. With same amount of money I would suggest if somebody can buy IndusInd Bank or YES Bank, they are much better options to invest. However, between Federal Bank and that, the absolute price is so different that people are not able to relate.""As a small investor they are not able to relate that same amount of money if they can still put in a bank like IndusInd or YES Bank. The chances of making money is much higher and probably much high beta and you can feel much secure. However, that is the issue, so I will not say DCB Bank also. If somebody has to be in banks then few private banks, that is all," he said.