Not a good time to get into banks: Swati Kulkarni
Banks do look attractive but given the global perspective and the events, which have happened, these banks are overowned by foreigners, so maybe we cannot better time it.
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| Updated: Swati Kulkarni, VP & Fund Manager, UTI AMC, talks to ET Now on banking stocks.
What do you think about banking stocks at present?
In terms of valuations, PSU banks look much more attractive now with the ROE in excess of 17-18% and the asset quality concerns, which have been there for sometime, its nothing new that has come up.
Most of the expectations are that next quarter also, you would see some kind of asset pressure, asset quality pressure but also more so because the banks are moving onto an automated system of recognising NPAs, so these are for the betterment of the banks' balance sheets and banks would be well prepared to take on the growth whenever the credit growth picks up and that we expect once the interest rate start to stabilise and there could be some signs of softening.
So from that perspective, banks do look attractive but given the global perspective and the events, which have happened, these banks are overowned by foreigners, so maybe we cannot better time it. We can spread and get an average entry at lower price.
What do you think about banking stocks at present?
In terms of valuations, PSU banks look much more attractive now with the ROE in excess of 17-18% and the asset quality concerns, which have been there for sometime, its nothing new that has come up.
Most of the expectations are that next quarter also, you would see some kind of asset pressure, asset quality pressure but also more so because the banks are moving onto an automated system of recognising NPAs, so these are for the betterment of the banks' balance sheets and banks would be well prepared to take on the growth whenever the credit growth picks up and that we expect once the interest rate start to stabilise and there could be some signs of softening.
So from that perspective, banks do look attractive but given the global perspective and the events, which have happened, these banks are overowned by foreigners, so maybe we cannot better time it. We can spread and get an average entry at lower price.
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