HDFC Bank reported its 4th quarter and full year results last week. The total interest earned jumped up by 25% compare to last year and total income by 24% to Rs 74,373.22 crore.

As of 31st March 2016, banks have collected deposits of Rs 545,873.29 crore up by 21% compare to last year. This healthy growth in deposits tells us that its product and services are attracting to its customers to deposit their money with them. Same time, bank advances (loans) stand at Rs 487,290.42 crore, up by 27% compare to last year. This is really healthy growth, especially in the high interest rate environment.

The NPA’s look pretty much under control at 0.94% of advances, stable compare to its peers. These numbers do assure that the lending practice by bank and due-diligence done by them is prudent.

If we talk about last thirteen years, from which the bank had seen growth in its numbers by almost 30% (top and bottom) consistently and enjoying higher P/E multiples compare to its quality. With increase in its competition the growth numbers in the last 3 three years are seen between 22% – 25%, putting some pressure on its P/E multiples and valuations.

But if you compare with other banks and their growth numbers, HDFC Bank still tops the list. We haven’t seen this bank trading at discount to our intrinsic value estimates very often. The last time it was trading below our estimates was in 2013, good time to buy then; today, the price is up from there by almost 100% beating market returns.

Aziz Dodhiya is the chief investment officer for the Valueoperations funds which operates in the Indian market as an FPI (Foreign Portfolio Investor). We do not offer any personal advice to buy or sell any stocks and the views that are shared by Aziz might not incline to your personal investment strategy and this is the reason we advise you to take professional advice before going ahead with our views.