Should one continue to trade long and buy small and midcap stocks? Sandip Sabharwal answers
“PSU banks are losing their competitive edge in terms of getting low cost deposits. It is a few months of a goldilocks scenario for banks, where credit growth is high. They have not been required to increase deposits because liquidity was strong and the balance sheets do not have NPA issues. Eventually, one or two years down, we will see NPAs come back in most of these PSU banks as rates become higher. ”
