It is worthwhile picking banking stocks now: IV Subramanium

In a chat with ET now, IV Subramanium, CIO, Quantum Advisors, talks about banking space.

ET Now: Why and what do you like in the banking space?

IV Subramanium: Both the PSU banks and the private sector banks, I do not have any favourites. Valuations definitely look a lot more attractive after all the corrections. We still recognise that there could be near term pressures on the margin because of the liquidity situation and the fact that the deposit rates are moving up pretty sharply but I do not think it is a cause of concern over a cycle. It is probably a few months we will find this situation. After that, it will come back to normal spreads and given the growth opportunities in that business, many banks are attractively placed. Within that, of course we prefer banks which also have a very strong asset quality. So as long as the banks focus on asset quality and the management is good, we have no problem facing the headwinds for the next few months but because of valuations, it is worthwhile picking those stocks now.