Consistent performer HDFC Bank can be among top 3 holdings in any portfolio: Dipan Mehta

In a chat with ET Now, Dipan Mehta, Member BSE & NSE, shares his view on HDFC Bank.

ET Now: On a relative basis, would HDFC Bank find favour post Q4 results? Would you use tactical acumen and just look at the kind of headroom that different private sector banks have?

Dipan Mehta: We have made a mistake of buying into other private sector banks and not looking at HDFC Bank. If you look at over a three-five year period, the risk in other private sector banks vis-à-vis HDFC Bank cannot be justified.

The amount of capital that you can deploy in HDFC Bank with the comfort, given that this is a consistent performer, is quite high. You would not have this level of confidence with other private sector banks.

To put differently, HDFC Bank can be amongst the top three or four holdings in any portfolio, but the same cannot be said for the other private sector banks. No doubt, there are many private banks which are great in terms of quality and in terms of performance, but there has always been some degree of volatility in their earnings.