"It has experienced dramatic growth since then, expanding from a tiny base in 1995 to its current network of 1,412 branches nationwide with 3,295 ATMs in 528 Indian towns and cities.

"With a market cap of over $11 billion, HDFC isn't the kind of small, nimble business that we typically look for. But its operations extend into all sectors of the banking business, and it's well positioned to take advantage of the improving Indian business climate.

"HDFC's business begins with its retail banking operations that take in savings and dispense loans and advice to customers.

"The money goes out as car and two wheeler loans, as personal loans and as loans against marketable securities. The company's retail operations include programs for high-net-worth individuals, investment advisory services and debit/credit card services.

"There isn't much about HDFC that's unique, but it puts itself at the top of its class with its relentless revenue growth, which has averaged over 42% a year (with a low of 22% in 2003 and a high of 70% in 2008) dating back to 2001.

"Even during 2008, when earnings growth slowed to zero for a couple of quarters, the result for the year was a robust $3.43 per share. That annual earnings figure slipped slightly in fiscal 2009, but is forecast to hit another new high next fiscal year. The company also pays a dividend (0.6% was last year's yield).

"HDB performed beautifully during the boom years of 2006 and 2007, soaring from 43 to 145 during the period. But the end of 2007 was the high water mark for the stock, which then began a bumpy downhill journey that eventually dropped it to 45 in November 2008, right along with the rest of the global market.

"But after a bounce to 77 just as 2009 began, the stock dipped again to near 45, etching a classic double bottom pattern. The gains since then have been dramatic and consistent, with the stock briefly moving above 100 before settling back into the mid 90s."

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