Any sell-off will hit banking space to maximum: Vivek Mavani

Vivek Mavani, VP-Institutional Equities, Brics Securities, talks to ET Now on banking space.

What is your outlook on the banking space?

As far as banking is concerned, there are 2-3 factors at play, one is as a result of macroeconomic factors, slippages in terms of nonperforming assets and delinquencies have also been high for quite a few banks including SBI.

The positive thing about SBI was that the net interest income growth was very robust as a result, which is why they were able to absorb the slippages but you cannot hide away from the fact that the slippages have been growing very rapidly across most banks barring few like say an HDFC Bank or where it is not yet alarming but in most other banks, especially on the PSU side, they have been alarming.

A more market-related reason for the sell-off is banks as a sector has also been overowned, so any sort of sell off is going to hit this most overowned sector the first or the maximum.