Fingers crossed for banking sector: Sandeep Singhal, Emkay Global Financial Services

Fingers crossed for banking sector: Sandeep Singhal, Co-Head Institutional Equities, Emkay Global Financial Services, in a chat with ET Now, gives his views on banking sector


What is your view on the banking space? Do you see things changing for the Indian banking spaces as well?

In this whole fall for the banking pack, lot of good banks have gone below their book values for FY13. Expectations are building about some policy action in the forthcoming credit policy, due in last week of January. However, our take is that there would be no bank rate cut, there would be no CRR cut. If at all that happens, maximum cut could be 25 bps. According to our understanding, RBI has chosen to infuse liquidity using OMO instead of CRR cut. We see banks fizzling out because lot of risk is still there from for NPAs from power sector, from airlines, from infra and may be like agriculture so keep you fingers crossed.