It’s easy to sing paeans about HDFC as long as there’s no problem with it. Just like it was with Yes Bank and all the analysts covering it just before the current set of crises hit.
But trust me, when things start to go wrong or even if there is just an inkling of things going wrong, several “stripes” will change colours then about HDFC too.
Call them “I told you so…” analysts who predict only with the benefit of hindsight which is why they can never be wrong.
IMO, no institution however revered, or of whichever cap, is infallible.
For Yes Bank, I still maintain the current crisis is made up of 2 factors: leadership uncertainty and NPA undereporting. (both of which mind you are known to the market post Sept 21 when stock closed at 230~ from where it has fallen another 20% due to all the negative news flow and to and fro)
In a way if the leadership uncertainty is resolved, it can be a prelude to the resolving the NPA undereporting issue. After all, RBI asked RK to leave due to the repeated divergences only allegedly.
Whether the new mgmt undertakes NPA clean up as an endeavour, just as Axis has done, and raising capital, against just like Axis has done, will ultimately reflect on its deftness and will determine our future as well as investors in Yes Bank.
The longer it takes for this complete set of things to happen, the longer will the share price will stay beat.
And if I can understand this, I’m sure RK, Yes Bank board (which is made up of high calibre people), and it’s entire top mgmt team of well qualified and experienced people and even the other promoter, who all stand to lose much more than we can even imagine (well we are retail investors who are quite diversified but is RK/MK diversified?), can also understand this much.