You can adopt the following strategy with respect to banking stocks.
Banking stocks overall will be under pressure. However, the PSU Bank rescue and recap package is working fine. Look to buy stocks like BOB and SBI on every dip.

Mid-cap banks are still under tremendous stress and other PSU banks may not be a good buying at this point of time.

Among private banks, avoid banks like Yes Bank and IndusInd Bank that are still vulnerable to bad asset issues.

You can look to hold on to top quality private banks like HDFC Bank and Kotak Bank but fresh buying may not be a good idea at this point.

Private Banks like ICICI Bank and Axis Bank you can look to buy on 10-15% correction from current levels.
This can be a broad strategy that you can adopt with respect to banking stocks.