There is no doubt that investors love HDFC Bank Ltd. Its exposures to major troubled assets are a shadow of its peers and it seems HDFC Bank made all the right decisions in lending. Its closest competitor in size, ICICI Bank Ltd has a bad loan stock nearly four times that of HDFC Bank even though its balance sheet is smaller. Ltd, HDFC Bank’s exposure to high-risk stressed loans was just 0.9% of its FY19 net worth, the lowest among banks. Notwithstanding the pressure on its profitability, HDFC Bank in all likelihood may look better than its peers, which are still saddled with dud loans.

Source: Mint October 10, 2019 01:52 UTC