Positive on banks and financials; IT looks expensive: Ashmore’s Ashwini Agarwal

Ashwini Agarwal, co-founder & partner of Ashmore Investment Management remains positive on banks and financial stocks.

Speaking in an interview with CNBC-TV18, he said, “On financial services and banks, across the board, we remain fairly positive and our sense is that balance sheets are clean now, heavy provisioning behind us, loan growth is picking up. So yes, the framework for sustainable, superior growth and earnings growth, beating topline growth is there for financial services and bank and therefore, positively inclined towards the sector.”

“As of now, I am worried about the earnings momentum and slowing growth because of the restrictions that have been imposed. However, broadly I do not have a significant upside or a downside view on the market but we continue to look for opportunities,” said Agarwal.