Sanjay Dutt optimistic on Bank of Baroda, Canara Bank

Sanjay Dutt, director at Quantum Securities told CNBC-TV18, "I am more optimistic on good quality public sector (PSU) banks, tier-II PSU banks, like Bank of Baroda or Canara Bank or those kind of banks because they are going to be better positioned for the multiple expansion as well as their margin expansion once credit off-take really picks up. So, everyone is hiding in banks like ICICI Bank and a lot of the other private sector banks. They are over-owned, no doubt, they will give better growth, they will give better performance, they probably have more manageable non-performing assets (NPA). But once the beta sets in, the credit off-take moves margins and the performance of the PSU banks in terms of stock prices would definitely be much better for investors as compared to the private sector banks."

At 12:14 hrs Bank Of Baroda was quoting at Rs 174.50, up Re 0.40, or 0.23 percent. It has touched an intraday high of Rs 174.95 and an intraday low of Rs 171.55.