Are banking fortunes set to surge with PSU sector's strength? Vinit Bolinjkar answers

economictimes.indiatimes.com:

ET Now: The deposit growth what we have seen for private banks has been strong. In fact, the advances growth for PSU banks has also been in a very comfortable range. Now, should we expect stellar numbers from banks and finance also? What are you making out of it?

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Vinit Bolinjkar: I expect very strong banking numbers to come in, especially from the PSU banks. Secondly, we might see some kind of NIM contraction, but that will be more than made up by the high street growth that we are witnessing amongst all the banks. And, the other factor would be with the economy kicking off, NPS could also be at suppressed level. So, the profitability would also improve. So, we are looking at slight NIM compression, high volume growth and NIM staying in control leading to stupendous numbers. The top pick among the PSU banks is SBI, Canara Bank and Bank of Maharashtra. And among the banks, we like IDFC Bank and Axis Bank as a dark horse.

ET Now: We have seen manufacturing sectors growing across various industries. The data that we have picked in from China's PMI number, in fact, the GDP number from other economies, base metal prices or LME, the kind of move we have seen, how should one approach these stocks considering that quite a move has already kicked in?

Vinit Bolinjkar: So, we