PSU banks can remain as trades, not investment ideas, says Macquarie

“Barring SBI, it’s difficult to take a call on other PSU (public sector undertakings) banks because of the enormous amount of challenges that exists across other PSU banks; at best they can remain as trades and can never be taken as investment ideas,” said Suresh Ganapathy of Macquarie Capital Securities in an interview to CNBC-TV18.

“There are no two ways that in post-COVID world quality banks will continue to gain market share as they have better capital position, better management and they are good in terms of various factors, enablers in terms of gaining market share over the next 5-10 years,” he said.

According to him, PSU banks are losing market share in deposits.