Going forward, public sector banks could deliver moderately good earnings in FY19, said Raamdeo Agrawal, co-founder, Motilal Oswal Financial Services.
"There were some bright spots from earnings this quarter like automotive, oil marketing companies (OMC), private sector banks and non-banking financial companies (NBFCs). But, major disappointment came from public sector banks," said Agrawal.
Speaking exclusively to CNBC-TV18 from the sidelines of the Sohn Conference 2018, he said, "Currently, one should be very selective in terms of stocks and look for top quality management and top quality business."
He also added, "Although Q4FY18 wasn't great but FY18-19 could be a better year."
Talking about auditors resigning from some listed companies, Agrawal said auditors are answerable to the shareholders before resigning. Auditor is the watchdogs of the shareholders.
Sharing his rationale for being positive on RBL Bank, he said they have managed to turn it around and make it into a modern pan-India bank with diversified lending, good team and best of investors.
“I see this bank as right team, right size, critical mass and getting brand equity at reasonable price. It will be able to encash on large profit pool,” he said.Motilal Oswal is a launch partner of CNBCTV18.com