Investors from last 2 years are wondering - Why HDFC group shares aren’t moving?
Well, there might be several finer details for this but one of the most obvious ones is - They are trying too hard and when you try too hard, it more often than not, backfires. that too in many ways.
One of the biggest troubling factors for the bank have been : Employee Retention.
We all have had this experience with HDFC Bank where we get atleast one if not 2-3 calls per week for taking personal loans. Looks like employees are being offered targets to sell , no matter what role you are in and that pressure to sell more often leads to misselling.
What’s more interesting is : Inspite of all these attempts, HDFC Bank is growing at a slowing pace than ICICI Bank.
It will be interesting to see how the bank tackles this challenge.
PS : looks like the article is a paid one. if any has a full version, please share
100% true. I’ve had this experience with HDFC. They’re just interested in sales nothing else. Even to change my Mobile number I had to write 2-3 mails to their customer care and it took 10 days while a PSB like PNB did it same day without any follow up.
Because of this I got so frustrated that I’ve moved almost all my money to Government banks and now it’s just a matter of time before I go to their branch and ask for closure form.
Now a days 90% of work is done using online Banking. So there isn’t much difference
One plus point with PSBs is they never call you for any sales except SBI which calls up sometimes for credit card
While anecdotal experiences to some extent reflect certain parts of the business, it is the parts that move the business are important. And these are not subjective and qualitative, these are hard facts, numbers and quantitative aspects.
So we can dislike a HDFC Bank, a Bajaj Finance for their practices, but if at the business level, they are posting great numbers QoQ, YoY, their prices will increase no matter our complaints. One reason is that retail investors don’t have the strength to move prices in such companies. And if the price is falling, there will be many reasons for that too.
And you cannot compare private and PSUs, they are poles apart regarding certain things. Each has its own advantages and problems.
I agree, as far as the HDFC bank numbers go, they look perfectly fine. As a shareholder I am happy with the performance as depicted in their financials. Yes share price can go up and down but the numbers reported is quite good. I would start worrying if their financials starts deteriorating.