SBI will continue to grow: DD Sharma

DD Sharma, Head of Research, Anand Rathi Securities spoke to ET Now on SBI and other banking stocks.

What's your call really on SBI and other banking stocks?

SBI is placed uniquely in India. It has the largest reach in India, plus they have the lowest cost of deposits also. CASA is strong. So all these things suggest that SBI will continue to grow because of its deep reach across the country. This bank can lend to a variety of retail consumers. There, you do not need to lend at the base rate or the slightly higher than the base rate. You get better margin.

Therefore, SBI's focus should be the retail consumers as well as the SMEs and the small users because the big borrowers always ask for the fine rates and there, the demand is coming down and rather in the SME segment, you have enough opportunities to lend at better margins and you have enough scope for lending also.