Go for safe banks like ING Vysya, HDFC Bank: Ajay Bodke

In a chat with ET Now, Ajay Bodke, Head-Investment Strategist & Advisory of Prabhudas Lilladher shares his views on the banking sector.

ET Now: What is your view about the private banks? Is it time now to start nibbling into the sector or would you still give it a wait?

Ajay Bodke: Obviously, banking is the largest contributor to Nifty. If one has to take a position there, then I would not be adventurous. I would stick to some of the marquee names in the banking sector.

HDFC Bank and ING Vysya Bank would be my favourites in the large cap and midcap space. I would still refrain from getting headlong into the public sector banking space because there will be lot of headwinds for the next two or three quarters.

On the NPA front, we still have bad asset problem. The NIMs continue to remain under pressure. We would need a quarter or two to see how these headwinds pan out. In the current environment, it would be better to be with extremely safe banks like HDFC Bank or ING Vysya Bank or ICICI Bank at lower levels.