Pick DCB, advises Dipan Mehta

Dipan Mehta, member of BSE & NSE told CNBC-TV18, "We like the numbers of Development Credit Bank (DCB) and it is on track what we have seen over the past few quarters or so and despite taking a hit on the other income side the company has delivered decent set of numbers. More importantly it has been able to improve on their return on equity."

"In the private sector banks DCB remains our top pick and we are awaiting numbers from YES Bank because it is a company we have been overweight on, but of course it has underperformed significantly compared to its peer group and we are keenly awaiting as to how they have managed this particular quarter and considering that they had major challenges on raising resources how they have been able to manage their asset-liability over there, that is an important consideration, so these are the two companies which comes to mind," he said. "What we have realised is that just being with the best and the largest is a more sensible strategy and keeping that in mind HDFC Bank should be in most of the investors' portfolios. So rather than trying to analyse which is the best private sector banks and their outperformance could hardly be 3-4 percent or at best 5 percent, for a long-term investor they are better off with the large caps and HDFC Bank certainly takes the absolute pick over there." Also Read: FIIs reduce stakes in banks in Jul-Sept qtr