These private bank stocks are a must have in your portfolio

Even as investors remain concerned over the non-performing assets of banks, private sector banks have actually managed to do well since the month of February this year. February month saw experts commenting about Indian banks as ‘in more trouble than Chinese Banks’.

According to Citi group's report on Indian financial sector the asset quality was not so bad six months ago and possibly the asset quality won’t be so good six months from now.

The report suggests the asset quality problem may have peaked(directionally); but it will remain tough on the balance sheet & profit & loss in FY 17. There will be elevated costs & some NIM pressure. The report suggests things will start coming together in terms of earnings, quality & better growth and the investors should not wait till then for stock returns.The sector is ripe for investing as there’s a falling rate trade playing.

Investors are well advised to look at private banks for investing and can look at ICICI Bank, Axis Bank, IndusInd Bank, Kotak Mahindra Bank, HDFC Bank and Yes Bank for long term investing.