Banking is most promising sectors to invest:

This continues to be one of the most promising sectors to stay invested in, and I have been a proponent of the sector for almost a year and a half now.

In a chat with ET Now, Nitin Rakesh, CEO, Motilal Oswal Asset Management Company, shares his views on the outlook of banking stocks.

What is your view on mid-cap banks, and even ICICI Bank, which came out with a stellar set of numbers?

The banking sector has probably been the brightest star in the whole earnings season, not just ICICI but almost every bank has given pretty stellar performance. Especially some of the mid-cap PSU banks have outdone themselves in terms of what people expected from them. We see earnings growth of around 25% odd across the board. We expect the larger banks to deliver the same kind of numbers. You might see some better numbers from the smaller lot, but on an average this is one of our top picks. This will continue to be a proxy to the economic growth. The credit offtake is fairly strong. Net interest margins have been maintained really well by most banks and NPAs are not so much of a concern, barring one or two obviously individual cases. So, from our point of view, this continues to be one of the most promising sectors to stay invested in, and I have been a proponent of the sector for almost a year and a half now.
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