HDFC Bank has had a seriously rough run. The stock is down more than 25% this year, and around 30% from its 52-week high. The market cap has taken a pretty big hit too.
There’s a lot going on margins have been under pressure, the HDFC merger hasn’t delivered the growth the market expected, and now governance and leadership issues.
The latest blow came this week, with HDFC Bank falling another 2.2% after reports of a US securities lawsuit and continued uncertainty around CEO Sashidhar Jagdishan’s tenure. (source)
A stock that was once considered almost a core holding for Indian investors has definitely gone through a major change in market perception.
Do you think HDFC Bank is going through a temporary rough patch, or has the story fundamentally changed?
banks runs on trust, they broke it with their predatory activities to increase their profit and commissions. will not trust that bank again, i closed my acc there and moved it to icici.
I remember HDFC Bank used to be one of those stocks people barely questioned…Now every dip seems to come with a new concern…Quite a turnaround in sentiment for a stock like this
This reminds me of interesting story. How the tables have turned.
A decade back people were saying the same thing about ICICI bank and going to HDFC bank
When Chanda Kochar was in news every day and scam after scams were coming up. In fact both Chanda and her husband were jailed.
If I remember correctly, stock was flat for 3-4 years and no one wanted to touch ICICI bank.
