Little overweight on BFSI, avoid PSU banks: David Pezarkar

In a chat with ET Now, David Pezarkar, CIO-Equities, BOI AXA Investment Manager shares his views on the BFSI sector. Excerpts:

ET Now: In your current portfolio strategy how are you allocating capital, what is your total exposure to the BFSI space and within that how much are you exposed to private banks?

David Pezarkar: Well we are slightly overweight in the overall BFSI space but like most of the other portfolio allocators we have stayed away from the public sector banks.

We would like to see sustained couple of quarters of improvement in terms of asset quality, lesser restructuring and how these banks are able to sustainably increase their business without continuously resorting to loads of capital from the government. So there are too many concerns while the valuations for the public sector banks remain low but as of now we would prefer to play any cyclical upswing in the economy through the private sector bank route.