Bullish on Development Credit Bank: Gaurang Shah, VP, Geojit BNP Paribas

In an interview with ET Now, Gaurang Shah, VP, Geojit BNP Paribas Financial Services, shares his views on bank stocks. Excerpts:

ET Now: You are bullish on the private banking space versus the PSU banking space or is it the other way round?

Gaurang Shah: No it is the same way round for a very long time and the entire name starting from Axis, ICICI Bank, Kotak, HDFC, Yes Bank, IndusInd Bank and DCB. Two names that we are positive on in the PSU bank is State Bank of India and Bank of Baroda.
ET Now: What is your view on DCB?

Gaurang Shah: We have a positive coverage on DCB and the stock is trading very closer to our target price. So any dips, one can definitely use to get into the stock. Since the numbers are just out, we need to go back to our work terminal and re-work on the targets upwards but I would not get bothered by such small blips. Interest rate cuts could be a bigger trigger for the entire banking pack, interest sensitive and equity market.

ET Now: Do you like SKS fundamentally because being an untouchable when it was at 100-125 it is now a consensus favourite across brokerages but the point is it has risen quite a bit over the last couple of months, has the rise been too fast or will earnings support it?

Gaurang Shah: Well, I would not want to comment on it because we do not cover it but yes I would say that the rise has been at a very fastest pace than anticipated.