Bad debt worries spooking banking stocks; be selective: Daljeet Singh Kohli

In a chat with ET Now, Daljeet Singh Kohli, Head of Research, IndiaNivesh, shares his views on banking stocks.

ET Now: Is non-performing asset (NPA) worries haunting banking stocks?

Daljeet Singh Kohli: Yes. Concerns over NPA worries still persists. There is a technical reason for this. By the end of ongoing quarter, the restructuring process will get over as per the RBI mandate. Therefore, we will see a sharp surge in NPA figures. The market too is expecting weak March quarter numbers.

Banking stocks have moved sharply and thus they are not seeing selling.

In terms of investors or portfolio investment, we are not too much worried about those who are holding banking stocks. We are not recommending investors to get out of banking names. This is because we have bought these stocks at much lower levels. We think that this period will be marked by temporary problems. These problems will fade away as soon as GDP growth revives in next two-three quarters. One needs to be very stock-specific.