ET Now: Do you like banks from a near term or a medium term perspective with all that is happening to the economy as well?
Dhiraj Sachdev: Yes, we quite like the banking sector given the fact that if your economic revival happens and GDP growth improves obviously the lending book of the banks will also be higher than what it has been. Secondly, as the economy improves obviously the NPA cycle trend will also trend downwards especially on the state owned banks.
While the private banks are already fancied by the market and are growing pretty well, even the state owned banks is trending down on the asset quality issues over a period of time, plus most of the state owned banks have exposure to the government securities investment and in case the inflation is trending down because of the reasons I mentioned earlier and the bond yields stands to get corrected they will have huge amount of investment gains as well.
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