Avoid PSU banks; worst is over, but stocks will take time to pick up: Mehraboon Irani

In a chat with ET Now, Mehraboon Irani, Principal & Head-Private Client Group Business of Nirmal Bang Securities, shares his views on the PSU banking pack. Excerpts:

ET Now: What is your own opinion on the PSU banking pack?

Mehraboon Irani: I have always been negative with regard to PSU banks and I still remain negative from the stocks angle right now. But at the end of it all, if you ask me in general about the performance of PSU banks as well as the quality of assets, I feel the worst is over. Hence from now on, things can only improve. However, it will happen at a very slow pace.

ET Now: What are your top PSU bank ideas?

Mehraboon Irani: I would go with Bank of Baroda at number one and possibly SBI at number two. But if you ask me about quasi public sector banks, I would put Federal Bank at number one and DCB at number two.