Don't see finance companies going for diversification: Prateek Agarwal

In a chat with ET Now, Prateek Agarwal, Business Head & CIO, ASK investment Manager, shares his views on banking sector. Edited Excerpts:

ET Now: If you analyse the new guidelines on payment banks and small banks,guidelines, do you think some of the housing finance companies can also be candidates out here for either a small bank or a payment bank? Can they apply and would they stand to benefit if such a provision is open for them?

Prateek Agarwal: I would be skeptical. They are already doing well. They do not need to diversify from the current activities. I would be skeptical that there would really queue up for diversification.