World’s Most Expensive Bank Is a 20%-a-Year Growth Machine

It’s hard to overstate just how much global investors are captivated by HDFC Bank Ltd., India’s biggest lender by market value.

Not only does the stock trade at the highest valuation among the world’s largest banks, but international funds are so bullish that they’re willing to pay a record 20 percent premium over HDFC’s local stock price to get their hands on the limited number of shares available to foreigners. Brokerage analysts, meanwhile, have more buy ratings on the company than at any other time in 14 years.