Phani Sekhar positive on private banking stocks

P Phani Sekhar of Karvy Stock Broking told CNBC-TV18, "We continue to be positive on banking space especially on the private sector space and you would have noticed that apart from say State Bank of India (SBI) and a few other public sector banks which in the last 15 days tinkered symbolically with their base rates, you haven’t seen much action out there. On the profitability front, private banks are placed much better than public sector banks and to that extent if push comes to just like ICICI Bank showed, they can reduce their base rates by around 25 basis points or so."

"More importantly on the asset quality front also they are better placed then public sector banks. So I guess there is a good chance that over the next 3-6 months there might be another round of 10-15 basis points cut in base rates by many of these leading private sector banks which can actually poise the competitive landscape very interestingly in their favour," he said.