Look at Axis Bank, ICICI Bank, YES Bank: Mayuresh Joshi

Mayuresh Joshi of Angel Broking told CNBC-TV18, "Clearly the fear factor that is associated with the banks is their Non Performing Assets (NPA) problems and clearly the public sector banks will have some amount of issues in terms of stress on to their balance sheets. Having said that, probably ICICI Bank was one of the private sector banks that did disappoint in terms of expectations of asset quality but clearly our take is that credit growth should start picking up over the next two to three quarters with structural rate cuts probably coming through by the Reserve Bank of India (RBI). That would probably mean that the kind of stress that one probably expects incrementally should probably start coming down. So fresh slippages and fresh restructuring should probably start tapering down."

"So our approach probably is a mix or a clutch of these banks, a mix of private and public both. So what we probably like is Axis Bank, ICICI Bank and YES Bank from the private space. Probably what we are liking from the public space is something like State Bank of India and Bank of Baroda," he said.

"The smaller public sector undertakings (PSUs) is something that we will probably wait till the results probably come out. A lot more needs to be pumped in from the government probably to ensure that their balance sheet expansions happen on a steady basis. So a clutch of financials is what we will look at but again the approach should be that over the next two to three months in a staggered way."