Should I Invest in HDFC Bank ?
I would like to draw your attention to one of world class Indian bank and why you should invest in HDFC bank at current levels.
Sector performance
The Indian banking market is growing at an astonishing rate, with Assets expected to reach US$1 trillion by 2010. An expanding economy, middle class, and technological innovations are all contributing to this growth. The country’s middle class accounts for over 320 million people. In correlation with the growth of the economy, rising income levels, increased standard of living, and affordability of banking products are promising factors for continued expansion.
The Indian banking Industry is in the middle of an IT revolution, Focusing on the expansion of retail and rural banking. Players are becoming increasingly customer – centric in their approach, which has resulted in innovative methods of offering new banking products and services. Banks are now realizing the importance of being a big player and are beginning to focus their attention on mergers and acquisitions to take advantage of economies of scale and/or comply with Basel II regulation.
History
The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an ‘in principle’ approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI’s liberalization of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of ‘HDFC Bank Limited’, with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995.
| March 2006 | March 2007 | March 2008 | March 2009 | |
|---|---|---|---|---|
| Cities | 228 | 316 | 327 | 530 |
| Branches | 535 | 684 | 761 | 1500 |
| ATMs | 1323 | 1605 | 1977 | 2890 |
Data Source : Livemint / Wiki / moneycontrol
During the year, the Bank stepped up retail customer acquisition with deposit accounts increasing from 6.2 million to 8.7 million and total cards issued (debit and credit cards) increasing from 7 million to 9.2 million.
HDFC BANK business strategy emphasizes the following
Increase market share in India’s expanding banking and financial services industry by following a disciplined growth strategy.
Focusing on quality and not on quantity and delivering high quality customer service.
Leverage our technology platform and open scaleable systems to deliver more products to more customers and to control operating costs.
Maintain current high standards for asset quality through disciplined credit risk management.
Develop innovative products and services that attract the targeted customers and address inefficiencies in the Indian financial sector.
Continue to develop products and services that reduce bank’s cost of funds.
Focus on high earnings growth with low volatility.
Current Valuations
| Market Cap | 44472.23 cr |
|---|---|
| EPS | 49.05 |
| Price | 1046.05 |
| PE | 21.33 |
A touch expensive then competitors but worth investing at this point.
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Please do not have any kind relations with HDFC Bank then you will be taken to task by this bank.
I am living in Dubai. I have NRE bank a/c. I want to invest some money in mutual fund . how can it possible and send me some detail and plan .
thanks
Baljit Singh
i want to mutual fund investment. but i living in dubai
thanks Baljit Singh
I am not sure how the NRI Investment goes but you can try ICICI or some other online brokerage houses and see if you can invest by creating an account in them.
Hi Baljit ,
My name is Puja. I am living in dubai as well ……..For Mutual fund investments , You have to open account with banks like ICICI or Hdfc Bank or you can open account with brokerage houses like Sharekhan , Geojit etc . Once your account is opened , you can start investing in mutual funds .
Let me know if need any furthur help Regards ,
Puja
my emial id is vivekpuja2001@yahoo.co.in . you can ask me your query on this id .
Puja
I am staying in kuwait. I have an NRE a/c and Pan card and Trading account in HDFC bank. Would you please advise me how to start investing in stocks , funds and other shares.
Use your account to purchase and sell stocks
Be careful before investing with HDFC bank….
I did a investment with them till four year they took the year payment and when the payment five year it was young star linking with life insurance scheme for my son but on five year them send me half the amount what invested and aletter that with is closed.
very informative post…thanks a lot
hi, dis is shrikant actually i have a/c in another bank but i want to invest in hdfc mutual fund so let me know it’s possible without any account in hdfc should i invest in thid bank.
Yes it is possible and you don’t need a bank account but what you need is a Demat account.
hii…im working with HDFC bank Dubai (NRI service) if u like to know more about HDFC mutual fund investments, Loans, NRE NRO account opening,,,, send ur queries to yasirarafathdfc@yahoo.com
Thank you