Having used both HDFC / ICICI as well as SBI for number of years i can vouch that private banks will still keep taking marketshare from public banks. It's not just about upgrading the tech but also customer experience. - no one wants to go to SBI in case they want to transfer the loans from SBI to HDFC
Great write-up! I agree that HDFC is one of the best businesses in India. In terms of entry strategy, long term investors should actually look forward to a broad market sell-off rather than be wary, as it would give them an even better entry point. Once it reaches a level where it would yield 20%+ IRR, it would be a "lollapalooza" stock, as Munger would put it - great quality, great runway and great price. Today, it is great quality, great runway, good price.
We actually had an opportunity during the Covid sell-off in March 2020. But for now, makes sense to take a small position and look for additional entry points.
Having used both HDFC / ICICI as well as SBI for number of years i can vouch that private banks will still keep taking marketshare from public banks. It's not just about upgrading the tech but also customer experience. - no one wants to go to SBI in case they want to transfer the loans from SBI to HDFC
Thank you for the post! Very interesting read!
Great write-up! I agree that HDFC is one of the best businesses in India. In terms of entry strategy, long term investors should actually look forward to a broad market sell-off rather than be wary, as it would give them an even better entry point. Once it reaches a level where it would yield 20%+ IRR, it would be a "lollapalooza" stock, as Munger would put it - great quality, great runway and great price. Today, it is great quality, great runway, good price.
We actually had an opportunity during the Covid sell-off in March 2020. But for now, makes sense to take a small position and look for additional entry points.