Prefer ICICI Bank, Axis Bank: Phani Sekhar

Phani Sekhar, Fund Manager-PMS at Angel Broking told CNBC-TV18, "From three-four year perspective, one should absolutely avoid public sector undertaking (PSU) banks because the whole demon of basel III will manifest itself around two-three years time. That is when capital infusion is absolutely required."

"Government’s shareholding in State Bank of India (SBI) is precariously poised and just around 56-57 percent; it cannot go below 55 percent, so whole host of challenges for SBI. From that investment time horizon perspective, that is three-four years, I would advise to go for a large private sector bank like an Axis Bank or an ICICI Bank. ICICI Bank is the second largest bank and valuation wise also it is pretty attractive. So I would strongly advise to go for an ICICI Bank," he said.