Saurabh Mukherjea on why HDFC Bank has a much bigger position in Marcellus portfolio compared to TCS

economictimes.indiatimes.com:

Saurabh Mukherjea, Founder, Marcellus Investment Managers, says My reading is that selling abates and as the company stabilizes, as the numbers stabilize, we will see institutional appetite returning. Remember, merger synergies have not yet kicked in. Without merger synergies kicking in, HDFC Bank is doing around 1.9% ROA. If that trickles up to 2% ROA, assume gearing of nine times. We are looking at an 18% ROE bank, even without meaningful merger synergies kicking in. And an 18% ROE bank growing consistently at 20% at this scale, we do not have too many other lenders operating on this scale, at this level of profitability anywhere in the world.
When HDFC bank falls by 5%, that has to be the first question.
Saurabh Mukherjea: It tells you a lot about the world that a bank of this scale can report 20% growth in loan book, improvement in asset quality and still fall 5%.

I found the results to be solidly reassuring. I appreciate that some people are worried that the deposit growth is not as high as expected. But my reckoning is that it will come through.

Sashi Jagdishan reiterated that this fiscal they will set up 1,000 branches, I know that the previous target was 1,400. I reckon they will get back to that number.
Just to put opening 1,400 branches a year into perspective, a well run regional bank like Federal Bank has 1,400 branches altogether.

But HDFC bank is aiming to set up 1,400 branches every single year. This year, they seem to be on track for 1400. Operationally, the bank is in good shape.

While deposit growth was less than what the market was expecting, it is still on an incremental, CASA basis. They're pulling in 15% of India's CASA, which is very impressive.

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