Rahul Arora positive on SBI

Rahul Arora - CEO at Nirmal Bang Institutional Equities told CNBC-TV18, "We continue to remain very positive on State Bank of India (SBI) in the public sector bank. The fund raising exercise of Rs 3,000 crore recently will help them and subsequently the will come out and raise for the capital. I do not think there is any concern on the Bank Nifty as a whole. We think that the Nifty will probably head to about 9,500 at some point during the last quarter of the calendar year and it will be lead by the Bank Nifty."

"Till I do not see a definitive turn around in the asset quality or stocks like Punjab National Bank (PNB), Bank of Baroda (BOB) and SBI to take a broader call and we have seen the corporate earnings on that side, I do not think I would be venturing too much," he said.

"On the private banking side, we are pretty positive, for example Federal Bank is our top midcap private sector banking stock. We continue to like private sector midcap banks and largecaps but on the PSU side I would still stick with SBI."