Prefer ICICI, HDFC Bank; do not shy away from PSBs: Neeraj Deewan

In a chat with ET Now, Neeraj Deewan, Director at Quantum Securities shares his view on private banks. Excerpts:



ET Now: What is it that you are advising your clients to do with private lenders such as Kotak Mahindra Bank, ICICI Bank, HDFC Bank and IndusInd Bank?

Neeraj Deewan: We have been positive on the private sector banks. After some consolidation, ICICI Bank looks very attractive among the private banks' lot. ICICI Bank is followed by HDFC Bank. These two stocks can be bought at current levels. Even for PSU banks, this quarter would be a good period to increase positions.

We have seen some correction happening in State Bank Of India stocks despite the rate cut.

Therefore, you will get opportunities even in the PSB space. If you pay heed to December quarter earnings by PSBs, they were saying that December quarter will not be that great and the March quarter will be similar to the December quarter. But for the coming quarter, the first quarter of FY16, they were expecting improvement. Keeping that in mind, and keeping likely rate cuts, one can expect growth picking up going ahead. Therefore, PSU banks should be considered whenever any corrections happens.