HDFC Bank top pick: Siddharth Teli

Siddharth Teli of Religare Capital Markets told CNBC-TV18, "Within private banking space our call has been more positive on HDFC Bank where we believe that growth rates will still be far higher and asset quality concerns are least, so valuations should not re-rate despite the fact that they are expensive, so that clearly is our top pick."

"The other two that we like are in the midcap space which is YES Bank and IndusInd Bank, we believe both of these will continue to grow above average. Asset quality might not be as much of an issue and more importantly it seems that if liquidity were to remain okay, the way it has been in the last few months, then these guys clearly stand to benefit given an element of wholesale funding within their liabilities, so these are the two names that we like," he added.

"We are incrementally turning more positive on ICICI Bank, we have a hold rating there but we are getting more constructive on the name. Our sense is that retail growth at 26 percent adjusted for buyouts, I think that bodes well as far as ICICI Bank is concerned and that will have a positive rub-off as far as the fee income growth is concerned as well. We did see fee income growth move up in this particular quarter."

"In terms of asset quality, their formation levels are still at levels they had guided earlier. So we are getting more constructive on ICICI Bank at these levels. Axis Bank's valuations are good, we have seen some cracks in terms of asset quality, marginal ones though at this particular quarter and we believe that there are still quite some chunky exposures which we remain a bit apprehensive on. So while we have a target price of Rs 1175, we look at a better entry point over here."