HDFC Bank is the most valuable private bank in India. Its market capitalization is 2.5x more than SBI, even though SBI has ~3x more assets. HDFC Bank has consistently grown its market share in loans and deposits across credit cycles. It has 7.8% and 6.4% market share in loans and deposits in FY18 compared to 2.4% and 2.6% ten years ago. What is unique about HDFC Bank? Click here to read the rest.

2 thoughts on “HDFC Bank

  1. Many thanks for nice article , always love to read all your articles
    Please validate or invalid my belief about future growth
    Future growth=ROEĂ—Reinvestment
    ROE is 20% and roughly hdfc bank reinvestment is 85%,
    So roughly 17% CAGR is minimum i guess and on top of it fees income from insurance MF selling and credit card fees

    Holding HDFC Bank since IPO

    • Thanks, Ashit.

      Good to know that you’re holding HDFC Bank since the IPO. It requires a lot of courage and patience to hold it through thick and thin. Hats off.

      You’re right on ROE * Reinvestment. A couple of minor points:

      (a) HDFC Bank ROE is hovers around 16%, they might improve it through cost efficiencies through technology.

      (b) the exit multiple on the judgment day will determine the IRR. It mightn’t matter much in your case as the holding period could be 3+ decades.


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