In one corner of the Street, a select few are debating about “What will happen to HDFC Bank?” Being a widely held bank in the institutional category of investors, this was bound to happen. Let them debate as many other private & public sector banks are moving on their path. One should keep an eye on them besides the much-talked-about HDFC Bank. For private sector banks, the majority of them have seen recovery as some kind of rational trade is still taking place even in the private banking space. For PSU banks, after a short few days of volatility movement, they have been able to recover faster, indicating continued interest. Probably at another time, private banks may be getting classified as “Private Banks - Ex HDFC bank”. Yes, there will be higher volatility in the short term, but if induced by volatility if one is taking any sell decision in the private banking space, one should remember that the lenders in question have created wealth in the long term.
