Private sector banks top pick, avoid PSU banks: Dipan Mehta

Dipan Mehta, Member at BSE & NSE told CNBC-TV18, "The top picks remain the private sector banks, the likes of IndusInd Bank, YES Bank, DCB Bank and Kotak Mahindra Bank. I think all of them are still in a secular growth story and rightly so banks are again driving this market up because it is the interest rate expectations which are driving our market at this point of time. Banks being sensitive to interest rates, we are seeing that they are the counters which traders and investors are preferring at this point of time. In any case they have very large weightage in Sensex and Nifty as well. So, investors who are slightly underweight in their portfolio are looking at perhaps increasing their exposure to banks at this point of time."

"I would still like to avoid the PSU banks with the exception of State Bank of India where in the past couple of quarters the numbers have been beaten street expectation and may be we are seeing the end of the road as far as further increases in NPAs are concerned. If the overall economy were to start improving and credit off-take does pick up then entire banking sector will do increasingly well for 2015-16," he said.