HDFC Twins have been one of the best-performing stocks since their listing on the Indian bourses.
A phenomenal return of more than 30000% in the last 20years. The stock goes beyond the normal expectation of a multi-bagger or a stable bet
So, how has HDFC Bank been able to keep up with the changing time?
To name a few strategies the bank has utilized for taking on the competition:
- Maintaining Customer Satisfaction
- Improving the base
- Measured Lending
- Improving the Quality of the Services
This is one of the reasons why despite the loss of confidence in the banking sector owing to reasons like Non-Performing Assets (subsequent Haircut), Nepotism, Quid Pro Quo Deals – HDFC Bank has managed to stay serene and weather out the different storms.
Even in the Covid lockdown and recovery phase, the bank has focused on
- Maintaining Asset Quality
- Increasing the Retail Book
- Keeping Adequate Capital for Disposal when need be
- Increased disbursements under the Emergency Credit Line Guarantee Scheme (ECLGS) as part of the Covid relief package by the government
In the recently announced results,
→ Quarterly profit rose 18%
→ Loans grew 15.5% from a year ago (about 3x the banking sector’s rate)
With this backdrop, it is absolutely clear that the bank is set to gain from the festival-related spending and recovery in demand (retail/industry)
Owing to this, it can be easily stated that the stock is set to rise further(~10–20%) in the next 8–12months
As an investor, it is best to buy on dips and accumulate rather than booking profits.
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- Emergency loan scheme: HDFC Bank beats SBI in Covid scheme loans | India Business News – Times of India
- Centre extends Emergency Credit Line Guarantee Scheme till the end of November
- HDFC Bank Q2 results