Tuesday, June 24, 2008

Ample capitalisation and liquidity

Today, HDFC has ample capitalisation and liquidity to back itself up. The businesses that HDFC is into are under-penetrated areas and offer a lot of scope for every player. As Rajesh Mokashi, Executive Director, Credit Analysis & Research Ltd., in the context of banking, explains to 4Ps B&M, “In India, the retail banking space is huge and the penetration is quite low. In a scenario like this, there is enough business for every player and I feel that these players can co-exist.” There’s no doubt that HDFC is a strong brand and it’s only a matter of changing gears and taking out the garbage before HDFC starts acting like the ruthless warrior, it was of the past. Sadly, it’s easier said than done. For only committed leadership can ensure that HDFC is able to make it through in double time. Otherwise, the AMD syndrome is waiting for an Indian example; and HDFC does not seem too far behind to fill in the roost...

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Source : IIPM Editorial, 2008

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