PNB, BoB, SBI top PSU picks: Sonam Udasi

ET Now spoke to Sonam Udasi, Head of Research, IDBI Capital, on his view on the PSU banks space.

What about some of the other stocks? Some that have recovered in trade, the likes of perhaps a Bank of India or a Canara Bank. What is your recommendation out there?

For the PSU banking space now there will be lot of segregation within the big banks. So in our view banks like SBI, PNB, BoB will continue to trade at a premium. Banks like BoI and the other banks where there are questions on asset quality and which have continued, it is not as if the asset quality questions have come in now. Also during 2007 to 2009 period some of the banks already had question marks on them and the premium continued for these 3 big PSU banks so I think that segregation will now broaden for some time. If somebody is looking to buy a PSU bank and take advantage of this then I think the way to play will be through PNB, BoB and SBI.