Bullish on the PSU banking pack, says Tarun Kataria

In a chat with ET Now, Tarun Kataria, Chairman, Cityspring Management, shares his views on PSU banking space.

ET Now: Would you start buying into the PSU banks, if you have not already?

Tarun Kataria: I believe it will happen. PSU banks, in order to support GDP growth, require around $45 billion of new capital. It is not coming from reserves, but will come from selling the government’s stake, in my opinion.

If that happens, then like you are seeing in Yes Bank, stock prices would tend to fly. So you can expect to see that. I think there is need to change some of the laws around 50% ownership. So I would be generally bullish on the PSU banking pack.