State Bank of India is preferred pick among PSU banks: Dipen Shah

In a chat with ET Now, Dipen Shah, Senior Vice President-Private Client Group Research, Kotak Securities, shares his views on banks.

ET Now: Is State Bank of India more like a short term buy now? State Bank of India's book value after the recent round of capital infusion has gone up by about Rs 80 to Rs 90?

Dipen Shah: Yes, SBI is obviously the largest public sector bank. So while we have a very cautious view on the overall public sector banks because of the problems related to the NPAs and also because of the higher expensive provisioning which they need to make. We believe that SBI being the largest bank would be a preferred pick in the PSU bank.

So if at all we have to pick up a PSU bank with a longer term perspective, yes it has to be SBI but as of now our focus is more on the private sector banks where we do like names like ICICI Bank and an HDFC Bank.