Avoid PSU banks as asset quality woes may continue to persist

Pankaj Pandey: If you look at the numbers from a banking perspective, what we have seen is that the asset quality concerns are still persisting and also some of the troubled sectors are still struggling. It does not look like there will be some respite for these sectors in the short term.

That is why we would want to still largely avoid the PSU pack. But selectively, one can look at some of the tier I names from a two- to three-year perspective.