Slightly negative on the PSU pack: Sonam Udasi

In a chat with ET Now, Sonam Udasi, Head of Research, IDBI Capital shares his view on the banking sector:

ET Now: What do you make of PNB and Indian Bank?

Sonam Udasi: PNB numbers, we always expected that there will be slippage, but because the valuations ran up substantially post BoB and BoI numbers for most PSU banks this sort of correction was expected in that sense. So if you see whichever PSU bank is giving some amount of greenshoot, investors are not too worried about that and there is no great sell off in these. Most investors now understand that if indeed this is a trough, then momentum for PSU banks from a valuation perspective should turn positive.

Our own sense remains slightly negative on the PSU pack still for the simple reason that we think that stressed asset situation will continue over the next two quarters as well.