Christine TanHDFC Bank LtdHDBCOMMENTSep 30, 2016

For his firm, they own 3 banks. RY covers them in North America, SVNLY takes care of Continental Europe, and HDB (really cheap right now) on the thesis that India's population could make it the next superpower in the next 50 years.

Largest private-sector bank in India. NA, Europe, Japan, and China are seeing aging populations. Average age in India is 30, so lots of growth going forward. If Indian government is serious about building out infrastructure, then you want to own one of the banks. 

Last quarter showed earnings growth of 15%. Moving forward, expected to be in 15-20% range. Not seeing those numbers among Canadian and US banks. Gives you diversification. Gets you away from tariffs in NA. The EM index is up 28% this year, best-performing major index this year. Yield is 1.03%.

As India's middle class grows, that will feed demand for banking services (i.e. mortgages). HDFC is India's second-largest banks.

Investing in India right now makes all the sense in the world. It's the largest population now, surpassing China. India has significant growth, population is relatively young and moving to cities, with more banking needs required. 

Second-largest bank in India. Just completed a merger with a mortgage business.

This is an Indian bank. It is one of the most expensive banks you will find. He doesn’t own the bank, but he does own HDFC Finance. All of the HDFC family of companies are extremely well run and priced at a premium. When you buy them, you have to take a long term approach because of their premium price. You are buying the growth in their earnings.