PSU banking pack looks attractive: Prateek Agarwal

In a chat with ET Now, Prateek Agarwal, Head Equities, Bharti AXA Invest Manager, shares his views on the outlook of PSU banks.

In PSU banks, would you still be an investor at current levels if you had not put your money earlier on? Would this be a good bet at current levels for most of the PSU banking lot?

It is a slightly longish answer, yes, at the current valuations, PSU banking pack looks very attractive, however as such, on the margin attractiveness of banking has clearly reduced, let's say between the period ending last quarter and now mainly because incrementally the cost of funds will go up and the NIMs, etc., that you saw in the last quarter would probably not be matched in Q3. Because of that on the margin may be, the sector is less attractive but at these price points after such a sharp correction in pretty large part of the mid-cap PSU banking space, we find that space attractive as well.