Positive on ICICI Bank, Axis Bank & select NBFCs: Arvind Sanger

In a chat with ET Now, Arvind Sanger, Managing Partner, Geoshpere Capital Management shares his views on banking space.

ET Now: What is it that you like out of the banking pack?

Arvind Sanger: The PSU banks still remain the safer place in my opinion to stay. Obviously there is a lot more leverage in the PSU banks but I am not completely comfortable with the NPA cycle and whether or not that has peaked and where some of the challenges there may come. Banks like ICICI Bank or an Axis Bank or a Yes Bank provide plenty of leverage and some of the NBFCs frankly, the private NBFCs that provide leverage that have good position some of which can be beneficiaries of recovering domestic consumer economy, it can be representative of improving real estate, improving interest rates although that is not imminent it looks like but whenever that happens, those will be positive. So clearly the financial sector is one that is going to be amongst the leaders in any kind of a domestic optimism about the domestic economy.