There are other ways to lower your CDR ,they can simply sell there loan books and raise cash and reduce CDR ratio.
This might hit eps in the short term or hamper growth but it is definitely going to imporve net intrest margins and help them reach a more comfortable CDR.
I have recently invested in hdfc bank rather than keeping money in bank fds as sooner or later intrest rates are going to fall and we might see other smallcaps or midcaps prices valuation elevate more than they already are.So hdfc seems like a decent bet to me in this overbought market getting a bank which is known to have the best quality loan book amongst it’s peer and that to at a historically low valuation is what got me intrested in the stock.
I have invested as a swing trade bet and will change it into a long term holding depending on how things play out.
Subscribe To Our Free Newsletter |