Don't buy PSU bank stocks: Mehraboon Irani, Nirmal Bang Securities

In a chat with ET Now, Mehraboon Irani, Nirmal Bang Securities, shares his views on the banking space.

ET Now: What are you advising your clients to do with banking, particularly the PSU banks, is it still a good idea to clean them out of your portfolio and buy some other stocks or sit on cash?

Mehraboon Irani: I have not recommended a single PSU stocks. The large part of the book is consisting of restructured assets which looking at the way the monetary policy can get tightened could become bad debts. So the banks are only going to bleed further and the worsening NPAs is going to be a major problem for the banking sector and for the economy as a whole also. While there could be some trading opportunities here and there in PSU banks but I am not going to recommend a single PSU bank.