Banking stocks look attractive from valuation perspective: IV Subramanium

In a chat with ET Now, IV Subramanium, Director, Quantum AMC , shares his views on the banking space. Excerpt.

ET Now: What is the cause of concern when it comes to the banking pack especially PSUs and the kind of volatility and the weakness that we have seen in some of these stocks?

IV Subramanium: We will have to live with it for some more time. There are some improvements in the power sector but some issues still linger on which could posssibly lead to some bad performing loans for some of the banks.

But, stock prices have corrected so even if you take into account a higher non-performing assets they do look attractive from a valuation point of view but you need some more patience to actually see the stock prices move up.

Therefore, one need to wait for a few more quarters before seeing any good numbers flowing out of the banks and sentiments towards the banks improving.