Amit Khurana, Co-Head Equites & Head-Research at Dolat Capital Market told CNBC-TV18, "JP group has been facing significant challenges on its debt servicing is fairly well known. However, it is just probably a confirmation of an event now taking place and ultimately impacting the balance sheets and the provisioning for the banks. So, our take is that these are some of the cases that the banking sector will have to get over before it starts to get significantly rerated. Our preference in general has always been the private sector banks versus the PSUs but in this case I believe some of the private sector banks also may have an exposure. So, there will be an overhang we believe.""Specific to State Bank of India (SBI), I am not sure what is the specific exposure at this stage but it will definitely have a negative bearing on the overall sector. However, having said that somewhere you have to gulp it down the throat and get over the situation and that is exactly what we believe in the next couple of quarters the situation will turn out to be on lot of such accounts which have been an overhang on the sector for quite some time," he added.
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