HDFC Bank, IDFC top picks: Jitendra Sriram

Jitendra Sriram, MD & Head-Research of HSBC India told CNBC-TV18, "Overall we are overweight on private banks. I must add that in our top picks apart from HDFC Bank we also have IDFC which is transforming itself into a bank sometime by October. So, that is another name that we do like. We are overweight on YES Bank."

"In terms of our preferred picks it is obviously the ones where we see risk adjusted returns being the maximum. I would say that on the private banks as a whole universe there is going to be a little bit of a headwind in near-term which is going to be that the deadline from Reserve Bank of India (RBI). As a result you might see an uptick in restructuring costs for a lot of these banks coming through into the earnings," he said.

"So, I would be a little selective on that segment at this point because there will be a lot of people who have grown quite aggressively in the recent past who could have some uptick in terms of restructured losses."