We expect HDFC Bank’s considerable moat to aid sustainable high future earnings growth, notwithstanding its large size, making it a must own core holding among Indian equities. one of the largest and most profitable private sector banks, posted yet another quarter of strong performance backed by healthy loan book growth. Though the headline number for the June quarter was slightly lower than street expectations, core operating numbers, excluding one-off investment, were strong. We see Q1 as a speed breaker, not a derailment, in the bank’s upward journey. In the current scenario, where public sector banks are saddled with huge non-performing assets and constrained by lack of sufficient capital, we expect the bank to strengthen its corporate lending by gaining market share from public sector banks while maintaining its leadership position in the retail segment. We see the bank churning profitable growth over the next few years as it enjoys dual moats (competitive advantage) on b...