HDFC Bank (NYSE:HDB), like most Indian banks, are expected to encounter higher cost of funds as they have to raise deposit rates to meet increasing loan demand. This will keep margins of some banks including HDFC Bank under pressure. But as lending rates are expected to climb faster in the upcoming quarters, demand for loans would decline.
On a price-to-book basis, HDFC Bank is trading at 3.8x, a sizeable premium to the 1.1x for the industry average. The valuation on a price-to-book basis looks … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards