This is incredible. Just goes on to show that Banking is fundamentally a conservative business. If you do not run it that way, you are likely get into trouble sooner or later. Being bigger, more aggressive etc. has come to naught as HDFC bank whizzes by. FYI, I checked these numbers based on closing price of stocks on 22-Oct-08.
I have known a few ex ICICI guys and they pride themselves in being aggressive and mkt share. Thats what has driven them. Mkt share. That obviously has led to placing bad bets. All of these problems with indiscriminate lending and poor credit control is coming back to haunt them now. I think they got lucky last year when they raised money from the market at around Rs. 980. Now the share price is trading less than Rs. 400.
A good lesson on Banking. Be Conservative.
No comments:
Post a Comment