Private banks score over PSBs on account of better resilience: Dhiraj Sachdev

In a chat with ET Now, Dhiraj Sachdev, Senior VP & Fund Manager-Equities, HSBC Asset Management shares his views on private sector banks vis-à-vis their public sector counterparts. Excerpts:

ET Now: Axis Bank lost another almost 2% and this has been the fifth successive day of red that the stock has seen. Is there a lot of concern about the government selling the SUUTI stake?

Dhiraj Sachdev: I cannot comment on stock specifics, but the fact is that we still like some of the private sector banks given that over a period of time, they have shown resilience in asset quality vis-à-vis the public sector banks and relatively, they are able to capture market share, in terms of CASA deposits or lending business, vis-à-vis the old generation public sector banks.

So it could be part of the market correction, but net net, if we believe that the economy growth will be gradual in nature, some of these private sector banks which have very heavy balance sheet on the corporate lending side should also show improvement in the earnings growth.