Pick ICICI Bank for long term, says Suresh Ganapathy

Suresh Ganapathy, banking analyst at Macquarie Capital Securities told CNBC-TV18, "The risk reward is very favourable at this point in time for ICICI Bank. If you look at it, the core business itself for ICICI is at about 1.4-1.5 times on an FY17 basis. People are forgetting the fact that despite the stress which ICICI has faced on their books, they have had the ability to provide for their bad assets. So, they have managed to improve their margins and it is a very smart thing that it has done."

"It is very surprising that the stock has lost 20-25 percent but then earnings have not been cut even by 0.5 percent by the street. So, there is some kind of a mismatch between what the bank is delivering versus what people are thinking it could turn out to be and that is where the opportunity lies at this point in time," he added.

"We are positive on ICICI Bank, there could be some near-term pressures in the stock. The stock does get traded as proxy for the economy as well as the banking sector and the macro-economic stuff is a bit more negative be it inflation or rate cycle. However, nevertheless, in the longer term ICICI Bank is still a good pick at this point in time," he said.