Prefer SBI, says Ashwani Gujral

Ashwani Gujral of ashwanigujral.com told CNBC-TV18, "Vijaya Bank rallied up to Rs 70. It has already fallen back to Rs 60. That is basically the level from where the rally started on the recap. So I would think that only good PSU banks or large PSU banks like State Bank of India or Bank of Baroda or something like maybe even a Punjab National Bank, they would benefit the maximum out of this PSU bank recap."

"The rest of them, the weaker banks may not get a whole lot. So, my sense is this is a good time to move on to maybe a larger PSU bank, maybe a State Bank because Vijaya Bank basically has given back the entire rally post the recap," he added.