Professionals leaving banks is common now-a-days. Many banks have reported high attrition rates in last Annual Reports.
This is a major area of concern, as senior professionals leaving for such reasons like high stress and nil work life balance can create operational risks to well managed banks.
This is common area of concern for investor in banks. IT industry goes through this ritual of firing people after every 4-5 years which does not create a good impression about IT companies. This trend seems to be now catching up with Banks.
Some of these reasons are good enough for Mr. Market to give lower P/B multiples for private banks going forward. Toxic work culture often leads to frauds, wrong practices and reduced productivity.
Having said this, Banks is general will remain a long term growth story in many nations which are still growing with rising population.
Above statements are my general observations and nothing specific to HDFC Bank.
(I will remain invested in HDFC Bank as of now.)
| Subscribe To Our Free Newsletter |
