Prefer Axis Bank, SBI: Gaurang Shah

Gaurang Shah of Geojit Financial Services told CNBC-TV18, "We have a reduce recommendation on Canara Bank and I do not think the plight of certain mid-sized or small-sized PSU Banks is going to improve any time sooner, I am talking about earnings visibility and of course the big concern from the gross and net NPA provisioning front."

"We would prefer something like an Axis Bank amongst the private sector players or if one wants to be in public sector then State Bank of India would be a preferred stock," he added.

At 15:10 hrs State Bank of India was quoting at Rs 271.10, down Rs 0.85, or 0.31 percent on the BSE.