Stay away from PSU banks even if they are cheap: Jigar Shah, Kimeng Securities

In a chat with ET Now, Jigar Shah, Senior VP and Head of Research, Kimeng Securities India Private Ltd, shares his views on PSU banks.

ET Now: What is your call on PSU banks?

Jigar Shah: We have maintained a view of staying away from the government banks, not primarily because of the asset quality issue but they are having problems with the NIM. They are also having problems with the capital adequacy going forward. So, all the factors suggest that one should stay away from the PSU banks, although, they are cheap. But, we continue to like the private banks.