Ambareesh Baliga, Market Expert said" State Bank of India  (SBI) is the best in the PSU banking space and the merger is positive in the longer run. The pain in the PSU banks can be there in the next two or three quarters.

I do not see too much of downside from here. In the next 12-18 months these PSU banks can show better performance than the private sector banks."

He further added, "As far as the private sector banks are concerned, beyond Kotak Mahindra Bank , HDFC Bank , YES Bank and IndusInd Bank I will look at buying PSU banks which are the top quality ones like SBI,  PNB   , Bank of Baroda   and Canara Bank  . I think these are the stocks to be bought,"