Prefer private banking space over PSU banks: Vinay Khattar

Vinay Khattar, associate director & head of research at Edelweiss Financial Services told CNBC-TV18, "Overall we do prefer the private banking space vis-à-vis the public sector banks given the non-performing assets (NPA) position in the system. Having said that, ICICI Bank is known to have higher component of stressed asset as compared to some of the more blue-blooded names like HDFC Bank and so on. So, along with the increased pressure on the NPAs and some of the accounts which is appearing more and more stressed out, that is one reason why ICICI Bank is facing some pressure on the price." "In addition, the overall credit growth numbers are not too inspiring for the entire banking sector and that is the second reason why you were finding that some of the banks are facing pressure both in terms of the topline as well as in terms of the bottomline," he said.