Focus on private banks, SBI from PSU space: Dipan Mehta

Dipan Mehta, Member at BSE & NSE told CNBC-TV18, "What we are seeing is a technical bounce in the PSU banks. They have been underperforming the markets with various challenges that they are dealing with. Some amount of value buying will be taking place over there. I think we have zero position in all the PSU banks except for State Bank of India. IDBI Bank is also another bank which is not in our favoured considering the past track record and the way the company has performed over the past several quarters and years." "Our focus still remains on the private sector banks and the private sector NBFCs where we do feel that the secular growth story is still pretty much underway and any relaxation on the monetary policy as well as improvement in the economy will benefit private sector banks as well because they will see a jump in their credit growth rates.""The main advantage or the main attraction towards the private sector banks is their ability to attract the right type of talent, grow the businesses, bring about innovation within the banking industry and manage the NPAs far better than their counterparts in the public sector arena. There are lot of other advantages - track record, corporate governance standards and many such other softer issues. Till we don't see those softer issues or those kind of qualities coming into IDBI Bank or the PSU banks, they will remain more or less on avoid list for us and a lot of other investors," he said."The entire financial services and banking sector is so huge and there are so many choices that you can play that particular macro theme pretty well with private sector banks or may be housing finance companies, other NBFCs. I don't really need to invest in the PSU banks or may be IDBI Bank or some of the other underperforming private sector banks. There is so much of choice and investors are better off having larger holdings in some of the companies which have already demonstrated their capacity over the past 3-4 years to deliver returns despite rather choppy industry trends," he added.