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HDFC Bank has been steady performer since its inception in 1995 and perhaps the only bank which has not faced any problems on NPA front or leadership issues. Its retail focus and sharp lending practices have resulted in strong balance sheet with marginal NPAs. The bank continues to increase market share by expanding its footprint particularly in the rural and semi urban areas. Business has been also growing due to diversified product offering and investment in digital platforms. We expect the company to sustain it growth for a few more years as there is considerable headroom to expand. Low cost deposits is a key strength, however, rising unsecured lending needs to be watched. The impact of Covid has receded significantly and operations are back to normal. We have an over weight rating due to decent valuations and secular earnings trajectory

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