Buy banking stocks on decline: Tandon

Anand Tandon, CEO, JRG Securities advises traders to buy banking stocks on major decline.

Tandon told CNBC-TV18, “I do not want to comment on the levels at which you should buy, but if you are looking for growth it will continue to come from there. Is it that the banks are systematically trying to do money laundering, I doubt it. Would there be cases where some local branch would be trying to improve their own performance vis-à-vis the rest of their branches and therefore suggesting to clients that they may want to take smaller accounts, it is entirely possible.” He further added, “I do not see how any management in any company with a distributor network will ever be able to control the behavior of individual branch managers sitting from a distance which is simply not possible. You can have the best of the systems and try to set things up in a manner where you are not willingly or unwillingly allowing anti-money laundering or money laundering going through your system, but system is as big as these banks are I would not put it past saying that a few events may have happened. As I said the growth will continue to come in these. These are expensive stocks. So if you do get a serious fall I think it would be a good time to look at them.”