Look at PSU banks: Dilip Bhat

Dilip Bhat of Prabhudas Lilladher told CNBC-TV18, "I think this is the beginning of a rerating for PSU banks. A lot of things that we were expecting possibly will happen. So, I don't know whether all the stocks will correct by tomorrow after showing a good rise from today, I have no idea on that. However I am sure that the secular direction is certainly upwards. If I were to just take only one case - the person who has been brought as the Bank of Baroda Chairman , I think it tells a lot, that a person of that stature probably is not going to accept some of the things lying down and that is where probably a lot of confidence would come.""We all know that they are beset with a lot of asset problems and NPA problems and they are not going to go away in a hurry. But surely I think they are also being reflected in their prices and the valuations at which they are available. However I would still take a broader call that from a risk return basis. The risk is limited but as more and more of these things become visible, it will become contagious across the PSU banks. I think PSU banks are in for a good rerating over the next 12-15 months," he said."If you have to prioritise some of the things then within the pack some of the banks, probably like State Bank of India will be better off. I would generally think PSU banks as a theme is what has to be played. So, I am sure the better ones would climb much faster and much higher at least initially. However this entire pack has to play the catch-up game. If we say that this government is working in the right direction, they have appointed the right people and if we are not confident of the outcome, then probably we are also trying to say that we are not confident about the actions that they are taking.""I feel that some of these people will bring about a good cultural change in the long run and that itself would mean a good amount of rerating for some of these banks," he added.