Is it good to exit HDFC Bank stock and enter into Federal Bank stock?

Let us look at the performance of both the stocks over a 20-year period as it gives a good impression after factoring in — Inflation, Bull Run, Slow down, Policies, etc.


Stock Return: ~ 26500%

Federal Bank

Stock Return: ~9000%

From this, we can make some deductions that can aid how & where our capital should be:

  • HDFC Bank has grown from one of the innovative private sector banks in the early 2000s to a bluechip representative of the Indian Banking space
  • The returns are excluding the dividends the company has provided to its share holders
  • One of the notion is that, any entity after becoming a Large Cap is unable to grow fast. This trend though has been ducked by HDFC Bank, ICICI Bank, and Axis Bank
HDFC Bank Services
(Image: Paisa Bazaar)
Fast Growing Bank: Federal Bank
Jupiter: Neo Banking Platform

Owing to this, it would be prudent to stick with HDFC Bank of you are an exiting investor.

Large Cap Banks in India

If you are a new equity investor, go through the Annual Report and performance of both the banks prior to making a final call based on your goals, capital available and risk appetite.

So, plan your investment accordingly

Hope this helps

You can follow my blog or Facebook page on investing for getting insight into other stocks.

Happy Investing!!

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