Prefer SBI, Bank of Baroda: Mayuresh Joshi

Mayuresh Joshi of Angel Broking told CNBC-TV18, "Asset quality should gradually start improving for banks like Bank of Baroda and State Bank of India which also has posted a decent set of numbers in the quarter gone by. So, again at around 0.7-0.8 times price to book our take is that if you want to look at private sector (PSU) banks, Bank of Baroda or State Bank of India are the banks that one should preferably be in. But again the horizon has to be at least four quarters because Q1 again will be a little bit soft for most PSU banks including Bank of Baroda and State Bank of India."

"Those are the banks that one might go for rather than the midcap PSU space where gain capital adequacy is a big issue. So, for the balance sheet growth to probably come through, capital expansion is what is really required. These are well capitalised banks, the return ratios are quite strong and once the credit growth returns to this system, they are well poised to ride the wave in the right direction. So, if one really needs the PSU space, Bank of Baroda or State Bank are the stocks that one could probably look at," he said.