Bullish on select private lenders as rate cut in the offing: Sudip Bandyopadhyay

In a chat with ET Now, Sudip Bandyopadhyay, President, Destimoney Securities Pvt Ltd, shares his views on the banking counter.



ET Now: What is your strategy on banks? Yesterday’s news on the IBA wage revision was reasonably positive. What was more positive was the fact that the positive news did not lift the sentiment. Banking stocks continued to go down. The Bank Nifty is down another half a per cent today. What is your view?





Sudip Bandyopadhyay: I agree. But, there are opportunities in the banking space right now, particularly if you look at well-managed private sector banks. We have been recommending banks like ICICI Bank to the clients. We continue to recommend to them even today.

We think that it is a good opportunity to buy into stocks like ICICI Bnak. PSU banks, we are still a bit sceptical — the asset quality issues, recapitalisation issues, are still wide open. Irrespective of the Budget, these issues are not going to go away very soon. We are cautious on PSU banks, but are selective on private sector banks. There remains strong possibility of an interest rate cut in the near future. We would not be surprised if we see a rate cut immediately after the Budget.