Stick strictly to private banks: Dimensions Consulting

What is the call on banks?

Ajay Srivastava: In a monopoly industry which is banking in India today with no fear of new entrant, it is a good segment to be in. You may not be at the bottom end of the cycle in terms of interest rate hike, in kind of topping up but you could be seeing maybe one or two increases and then we should see interest rates ultimately they have to move down and which means to use treasury income.

So we are strongly of the belief that stay away from nationalised banks which are going to see huge pressures on their NPAs. Stick to the private banks and build up the portfolio now, do not buy 100% but do not exit it but start buying into but stay clear of PSU banks. They will bear the worst of the burden of NPA system with the interest rate high and the oil prices, they will be badly hit. Stay with the private sector and we are saying keep nibbling and building up the portfolio on the private bank side.