Have turned bullish on public sector banks: Varun Goel, Head of PMS, Karvy Private Wealth

In a chat with ET Now, Varun Goel, Head of PMS, Karvy Private Wealth, shares his market outlook. Excerpts:

ET Now: Anything where you are convinced that it is worth making a bet, it is worth taking that risk?

Varun Goel: After three years, we have turned bullish on public sector banks. We have been avoiding this space through and through. Now looking at the valuations most of the mid-tier public sector banks are trading at less than half the book of FY15. If there is one sector which can double in the next two to three years - that is the public sector banking space. The worst probably seems to be over as far as the asset quality is concerned. I personally do not expect very significant increase in interest rates from the current levels. So, that is clearly the space to go really aggressive on.