Going ahead, govt-owned cos, PSU banks will be biggest contributor to earnings growth: Prime Securities

N Jayakumar, managing director of Prime Securities, on Wednesday said government-owned companies and PSU banks will be the biggest contributor to earnings growth going ahead.

In an interview to CNBC-TV18, Jayakumar said, "Even the capex cycle is going to be fuelled by multiple PSU companies that have been low on debt and now are willing to take up the load. So if you are talking about manufacturing and capex revival, it is largely going to be reflected in the PSU companies which will have earnings that will be dramatically different from what they were two years ago."

On the banking space, he said, "I believe the top 2-3 banks will not face this challenge of NPA cycle. I think the numbers there compared to the losses they had to bear where they had these large one-off NPAs is going to be very different."