Buy SBI, ICICI Bank at current levels: Diwan

Prakash Diwan, Asit C Mehta Investment advice traders to buy SBI and ICICI Bank at current levels.

Diwan told CNBC-TV18, "If one were to understand the reason why banks have come down is because we keep on debating whether we are in for a decent repo rate cut or not this time. Even if that doesn't happen and even if there is a CRR cut, there is going to be a significant change in the liquidity in the market and that could just make things easier for banks in terms of getting that extra credit growth that they are always looking for."

He further added, "In terms of earnings expectations our sense is that the earnings would be fairly decent in terms of especially the credit growth side SBI possibly could clock about 17-18% growth on a year on year basis and even the NIMs may not be badly affected and most of the write off has already been taken care off in December particularly from the telecom space. So, my sense is banks would surprise positively with earnings and one could buy into an SBI or an ICICI Bank or an Axis Bank at these levels specially on days like these when markets react over react a bit and then buy into these and trade on them for that 5-7% upside."