How change in Management changes the entire game

[PrasiddhShroff]

Why the Management of any company (especially Banks) plays an important role:

The management of the two giant private banks has changed in the last 5 years, which changed the complete trajectory of their businesses as well as their stock price returns

ICICIBANK changed its management in late 2018 after the Chanda Kochhar fiasco:

The management of HDFCBANK changed in 2020-21 when Mr. Aditya Puri stepped down from the CEO position after serving the bank for over 25 years.

Ratio chart of ICICIBANK divided by HDFCBANK shows the sheer outperformance of ICICIBANK since they changed the management

Will this trend continue?

Historically, the valuations of HDFCBANK have stayed at a premium over ICICIBANK valuations, but there were very few times when the valuations of ICICIBANK enjoyed the premium over HDFCBANK, the current scenario is one of those times

Only time will tell if HDFCBANK can have a comeback or if ICICIBANK will come out as the new leader