Six years as shareholder of HDFC Bank

Six years ago after my thorough research I decided to invest in HDFC Bank (my ICICI Bank relationship manager advised me to invest in HDFC Bank and not in ICICI Bank, and I am glad he did).

Incidentally, HDFC Bank was the start of my investing journey. It was the first share that I bought. Being a rookie back then, at one point I bought just one share to round off the number of shares with me. After the contract statement came I realised that I had paid a hefty brokerage charge on that.

Return

Between Feb 2018 and Feb 2020 I did not invest in HDFC Bank. Why? Because I was busy investing (ahem, diversifying) in Greenply, IDFC First Bank and Supreme Industries. That was a lost opportunity in hindsight.

Profit/Loss

XIRR

HDFC Bank is one of the stars of my portfolio, consistently maintaining XIRR of more than 20% except during the COVID pandemic crash where my five years worth of gain were wiped off in matter of weeks. It has since recovered though.

I invested steadily in HDFC Bank during the COVID pandemic market crash as I wasn’t sure if other companies will survive the post COVID pandemic era. And I am hoping HDFC Bank will.

NOTE: XIRR for initial months varies wildly and is not useful for any analysis. But once the investments complete minimum of 1 year, XIRR gives me a much better picture. So I calculate ‘XIRR (>1 year)’ which calculates XIRR only for the investments which have completed minimum of one year while ‘XIRR’ continues to calculate for all the investments irrespective of how much time has been completed. There are some periods where ‘XIRR’ and ‘XIRR (>1 year)’ calculate to the same amount as for that time all my investments had completed minimum of 1 year.