PSU banking pack still offers a lot of opportunities: BP Singh, Pramerica Mutual Fund

In a chat with ET Now, BP Singh, Executive Director & CIO-Equities, Pramerica Mutual Fund shares his views on PSU banks. Excerpts:

ET Now: What is your sense, do you think there is money still to be made in PSU banks?

BP Singh: Yes, there is still a lot of opportunities in the PSU banks. The government may set in reforms as we move ahead. For example, yesterday a minister had pointed out how road building is going to be speeded up and the problems are going to be removed. Now there is a lot of NPAs on the books of the banks pertaining to that particular sector.

Once these improvements take place, the NPAs will start turning into good assets. That way the ability of the banking sector to actually start lending also improves and clubbed with that, investment demand will actually help. These banks are also cheap. So there is a lot of opportunity for investors to make over here.