Getting banking license will augur well for both L&T Finance and IDFC: Sudip Bandyopadhyay, Destimoney Securities

In a chat with ET Now, Sudip Bandyopadhyay, President, Destimoney Securities, shares his views on L&T Finance and IDFC. Excerpts:

ET Now: Is it positive for IDFC or L&T Finance stocks to get banking licenses?

Sudip Bandyopadhyay: Both L&T Finance and IDFC have positioned themselves in a manner that getting a banking license will augur well in the long term for these companies.

These two companies have been doing a lot of right things. Hence, they deserve a better valuation than what they are getting in the market.

However, in the short term, there will be a financial strain on some of these companies as they have to earmark money for a lot of things, including the statutory reserves and the cash reserves. Therefore, there is bit of a turmoil in the balance sheet of these companies that get banking licenses.