Prefer PSU banks for long term: Sashi Krishnan

Sashi Krishnan, CIO at Birla Sun Life Insurance told CNBC-TV18, "As a long-term investor there is money to be made in PSU banks. If you look at the Reserve Bank of India (RBI) policy that came out two days back it was significantly more dovish than many of us expected. I do think that going into the rest of this year, the RBI will look at cutting rates further. This tends to benefit a lot of these PSU banks. More importantly is the news that the government is now going to recapitalise those public sector banks, Rs 70,000 crore over the next four years from the government with Rs 25,000 crore coming in this year which I think is very good news because not will they be able to grow their balance sheet but you see monetary transmission happening."He further added, " The moment monetary transmission happen you see credit picking up and that is a key to a lot of these large public sector banks. Therefore if you want to play this cyclical recovery it is important for us to be there in those public sector banks because they will be benefit a lot when the cyclical recovery establishes itself."