Manishi Raychaudhuri, Asia-Pacific Strategist at BNP Paribas told CNBC-TV18, "The two main issues in the whole banking space are asset quality and capital raising and both these counts it is the public sector banks which are worse affected than the private sector banks. On the private sector bank side, I personally think that this recent underperformance is actually providing a good buying opportunity for the good quality banks, the ones that don't have a demonstrated asset quality problem. The ones that don't really have a major capital raising requirement right now.""On the other hand the public sector banks do have a problem. Majority of them do need to raise capital. Possibly about several billions of dollars of capital in next three to five years. Even the asset quality problem is much more pronounced in the PSU banks. Even though they have started reporting larger - versus that is NPLs over the last three quarters or so. I personally think that problem is likely to get worse and if you look at the sector in which these NPL problem is concentrated they are really the metals and mining and power.""Government policy, new project negotiation, new tariff negotiation can solve the problem partly in the power side. But for the metals and mining side that problem for now remains almost intractable. It has got to do with the global commodity price decline and global metal prices declining. China consumes about 50-60 percent of many of these and with Chinese affairs slowing down there is no respite from hard commodity price decline. So, on that scheme of things our preference would clearly lie for private sector banks. We think on a selective basis some private sector banks are providing buying opportunity at these levels," he said.takingstock_mraychaudhuri_banking_24sep
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