That is where the process oriented company and a relative Monarchy type company differs. I believe in so many years, HDFC Bank and group should not come under the category of a Monarchy. also, if new leader is from within, then he already understands the processes, strengths and weaknesses of the system he operates in and has to lead. Mr Naik left L&T top job, but L&T Infotech is gaining strength. He ensured next leader is capable and his company is process oriented.
If HDFC Bank was not process oriented and a Monarchy, then I would give it a pass even under AP and will eagerly miss the compounding and find other process oriented company to invest.
Big question is - Have Investors so far put their trust in a monarchy or Process. I have a tilt towards process as if HDFC group in not process oriented in India then who else would be? Then entire country would be uninvestible.
Agree, transition needs respect and should be closely watched. Infact, some would even take it as opportunity to build new position.
Disc: Not a buy sell recommendation. HDFC group companies form significant part of portfolio so views will be biased