Valuations of banking stocks looking decent: Dhiraj Agarwal, Standard Chartered Capital Markets

Dhiraj Agarwal, Director, Institutional Equities, Standard Chartered Capital Markets, in a chat with ET Now talks about banking stocks.

What is the call on banks? Are most of them looking attractive at these price levels?

Many of the banks have fallen to valuations which are looking fairly decent. So a large number of PSU banks are now between 1 to 1.5 times price to book which is fairly decent and fairly attractive valuations.

However, there is some headwind pressure in terms of buyings, have to mobilise much higher deposits as compared to the lending because of the incremental credit deposit ratios which are very very stretched for this fiscal. So that could put some pressure on margins going forward. But valuations wise they are looking at a range where they should probably be dipped into.