Yes Bank top pick, says Dipan Mehta

Dipan Mehta, Member at BSE & NSE told CNBC-TV18, "First a disclosure that we and our investors have invested in Yes Bank and it is one of the top picks in the private sector banks from our perspective. So, these private sector banks remain on a secular growth trajectory and really are creating value for minority shareholders. There could be a bit of hiccup on account of RBI changing norms as far as the base rate is concerned and that could impact the net interest margin (NIM) but broadly these companies are gaining market share at the expense of public sector undertakings (PSU) banks. They have revenue flows coming in from various businesses as well as from fees which are quite attractive and strong and my sense is that as the interest rates continue to decline through the rest of the year the private sector banks will be major beneficiaries.""By and large the balance sheet is pretty decent for Yes Bank and from time to time concerns have come about the balance sheet quality and exposure to various groups and sectors but the management has clarified on all those kind of fears that the analysts has had. So, extremely positive on Yes Bank, clear case for the PE to be rated on the higher side and remains best in class as far as growth rates are concerned," he said.