Speaking about banks in an interview to CNBC-TV18, Adarsh Parasrampuria, Investment Analyst for Financial Services at CLSA said, “The top quality banks are at the peak of their valuations. However, top PSU banks are not at peak valuations.”

“One of the key feedbacks that I am seeing after the second quarter results is the fact that the September collections have held up in October and things are holding up in November as well. So you are getting a sustainable servicing of EMIs that borrowers have and that is a fairly positive news coming through from banks,” he added.

According to him, 98-99 percent of listed large corporate companies may not opt for restructuring. “System loan growth will not move beyond 7-8 percent in the near term,” he added.

“NBFCs are more exposed to micro, small and medium enterprises (MSME) and MSME owners,” added Parasrampuria.

“One segment where I would still have a word of caution is the MSME business owner segment. While feedback from most companies do indicate that collections there are picking up, but the key thing one needs to keep in mind is that this is a segment which has got significant amount of funding under the government guarantee scheme,” he further added.

For entire interview, watch video