Why HDFC Bank Should Be on Your Radar Today

HDFC Bank 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.

The biggest change you never saw coming
Do you hate your bank? If you're like most Americans, chances are good that you answered yes to that question. While that's not great news for consumers, it certainly creates opportunity for savvy investors. That's because there's a brand-new company that's revolutionizing banking, and is poised to kill the hated traditional brick-and-mortar banking model. And amazingly, despite its rapid growth, this company is still flying under the radar of Wall Street. To learn about about this company, click here to access our new special free report.

The article Why HDFC Bank Should Be on Your Radar Today originally appeared on Fool.com.

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.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story