Worst for the NPA cycle could be just one or two quarters away: Mehraboon Irani

In a chat with ET Now, Mehraboon Irani, Principal & Head-Private Client Group Business, Nirmal Bang Securities shares his views on PNB and SBI.

ET Now: What is your call on PSU banks like SBI and PNB which are leading the market rally?

Mehraboon Irani: On the whole, the worst for the NPA cycle could be just one or two quarters away and once that is through, ultimately over the longer term this is a space which people will find money, will be able to make money and I have always been stating that 16% to 18% of once money in equities should be in the banking, NBFC and insurance space.

I have always been biased towards private sector banks but since you asked me a specific question on public sector banks, one or two stocks from PSU space should be in an investor’s portfolio especially with holding four or five stocks on the NBFC space and the banking space should be 18% to 20% of investor’s portfolio and in that SBI should be the best bet.