PSU banks look good in long term: Dilip Bhat

Dilip Bhat of Prabhudas Lilladher told CNBC-TV18, "Couple of things that I am banking on, one is that gradually as PSU banks get independent chairman - that itself will bring about a good amount of re-rating and change in perception. As we have seen, RBI is also very much engaged in discussion with the banks and with the government, about the 5/25 loans. That also will ease some kind of pressure on the banks. As the government starts releasing the payment for some of its infra projects which will ease the quality of the assets and the pressure on the banks.""I think some of these things will play its role and on a slightly longer term basis the interest rate on a downward trajectory is what we are expecting. Taking all these factors into account and the valuations at which they are trading and the re-capitalisation that the government is talking about, I think there is good steam left in PSU banks over next 1-2 years. I don't know what is going to happen over the next one quarter or two quarters because there could be some pressure on the NPLs. However on a longer term basis, on a risk return basis, they look good," he said.