Banking sector to report good growth this earnings season, says Valcreate Investment Managers

The banking sector is likely to report good numbers this earnings season, said Rajesh Pherwani, founder and portfolio manager at Valcreate Investment Managers, adding that the DCB bank's poor performance was one of the exceptions.

“There has been higher delinquency in the commercial vehicle (CV) sector and the rural side of the economy and that is showing up in the numbers of DCB Bank. Growth also has kind of been in-line with what people have expected. So, on DCB, I think it has been basically disappointment in numbers, but having said that, the good ones are going to continue to show good traction and numbers. There are banks where these issues are not likely to show up in a big way. So, DCB might be a one-off in the smaller banks, but there are other banks where you will see them tiding over these issues in a much better manner,” he said in an interview with CNBC-TV18.

Talking about Union Budget 2019, he said, “This budget has kind of articulated the vision for the next 5 years. We already had a budget before the government came into power and then this was more of a follow-through effect of what they have talked about. In fact, they repeated a lot of things that they talked about in the manifesto. I was pretty happy with the outcome of the budget."