Like ICICI, HDFC Bank: Dipen Shah

Dipen Shah of Kotak Securities told CNBC-TV18, "We do have a cautious view on the banking sector. That is largely because of the fact that the non-performing assets (NPAs) are increasing and it don't seem to be getting lower any time sooner that what we have heard from leading private sector banks as well as some of the public sector banks.”

He further added, “We believe that NPA levels could remain at elevated levels for most of the banks and we have now seen some of it even in the private sector banks. But on an overall basis if we have to select between the PSU and private sector banks, we would still continue to focus or continue to like private sector banks because of their relatively lower level of NPAs and there relatively lower exposure to the corporate and the mid segment levels. So we do like private sector banks more than PSUs and within that we like names like ICICI Bank and HDFC Bank."