YES Bank top pick in banking space: Parag Jariwala

Parag Jariwala of Religare Capital Markets told CNBC-TV18, "Trend continued to be very good so far as the retail private sector banks are concerned be it YES Bank, HDFC Bank or even IndusInd Bank to a certain extent. We like YES Bank in this space and that remains our top pick in the sector. We think that in terms of loan growth performance or margin performance, YES Bank is something which can deliver even 1.5x or 2x kind of a growth than the banking industry. Their version 3.0 which they have launched recently is far exciting. In terms of margins also, there are lot of factors which can drive margins higher. They are talking about capital raising plus they have done some tweaking of savings account deposit rates generally and wholesale cost of funds are going down."

"YES Bank would the only bank where there would be a reasonable certainty of 18 to 20 percent loan growth as well as margin improvement in FY16 and FY17 where rest of the banks would struggle in terms of growth and margins. So, YES Bank continues to be our top pick in the sector," he said.