HDFC Bank (NYSE:HDB) is the largest private sector bank by market cap in India, and the future could still be bright for this banking powerhouse. Led by longtime CEO Aditya Puri, the full-service bank has a strong deposit franchise (its loan to deposits ratio is only at 90% despite rapid loan growth) and nice chunk of fee-based revenues (30% of total revenue).
While Puri has been a great leader, Paresh Sukthankar was recently promoted to deputy managing director and appears ready to fill Puri's shoes when he ultimately leaves. Despite a valuation that looks rich on the face of it, shares of HDFC Bank could be a great long-term holding of because of the growth potential and proven track record of growing book value per share.
In this segment of The Motley Fool's financials-focused show, Where the Money Is, banking analysts David Hanson and Matt Koppenheffer discuss the positives and negatives of investing in HDFC bank.
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David Hanson has no position in any stocks mentioned. Matt Koppenheffer has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.