The counters in the banking hall of a state-owned bank in India. (Photographer: Sondeep Shankar/Bloomberg News.)

Very Selectively Looking At State-Owned Banks, Says Mahesh Patil 

Government-owned banks are bottoming out on account of the measures taken to check bad loans and the Rs 2.11 lakh crore recapitalisation plan, according to Aditya Birla Sun Life.

The asset management firm is “very selectively” looking at stocks from the space, co-chief investment officer Mahesh Patil, told BloombergQuint in an interview. Patil however cautioned that some of these banks "are not that well equipped" to deal with the challenges, and "may not even have capital to survive."

We don’t see the PSU bank space to be a broad-based kind of a story where you can play from a long-term perspective.
Mahesh Patil, Co-Chief Investment Officer, Aditya Birla Sun Life AMC

Telecom is another example of a sector that has bottomed out, Patil added.

You can watch the full conversation here.