NBFCs to do better than core banking stocks: Rajen Shah

In a chat with ET Now, Rajen Shah, Chief Investment Officer, Angel Broking shares his views on the banking sector.

ET Now: Banks have been beaten down. Is it time to bottom fish when it comes to that space or is there still some more time to go?

Rajen Shah: There is some more pain in the banking stocks. I have not recommended banking stocks for the last many months, except for Axis Bank which has taken a hit. Rather than the banking stocks, I would bet on companies which are on the verge of getting a banking license and are into insurance business.

These are the companies where spectacular growth is expected in the coming years. Bajaj Finserv has cracked a lot from 1000 levels to almost 570 levels, trading at hardly six times. Aditya Birla Nuvo continues to show a lot of strength and is trading at hardly 10 times the current year earnings.