Bullish on banks; SBI, Bank of Baroda, Yes Bank look good: Mayuresh Joshi

In a chat with ET Now,Mayuresh Joshi, VP, Institution, Angel Broking, shares his views on banking space.

ET Now: Speaking of banks, what is it that you are telling your clients now? This 25 bps gave a bit of a spurt. It could well be short-lived, is banks a good place to invest into be it PSUs or privates?

Mayuresh Joshi: We remain very positive on banks, private and public. The public sector banks might have a dual benefit of the treasury income as well with the bond portfolio doing extremely well. When it comes to the private side, we are seeing strong growth probably in terms of advances going at a much faster pace.

Again, 25 bps was just a nominal cut and if you look at it structurally and our take is that another 50-75 bps is on the anvil over the next six to nine months.

Structurally, banks are in a much better position with increase in credit growth. In terms of valuations, we like specifically State Bank of India, Bank of Baroda where the capital adequacy levels are very high.

Again within the private space, we are liking Axis, ICICI which have been our traditional buys and again, Yes Bank. The kind of numbers that Yes Bank has posted, it really shows the granularity in their liability profile is increasing. So we remain extremely optimistic and bullish on banks both private as well as public.