Let me put it this way. Buying an HDFC Bank at this price is far safer than buying when it was 30% higher. To that extent you are right that it offers a good entry. However, the caveat is that you must still take a very long term view from here on. You can argue on P/E ratio and say that private bank valuations have come to more reasonable levels. That is correct. For example, the P/E ratio of Indian private banks has come down from 41X to 20X in just the last 20 days. But the dividend yield even after the crash is just 0.60%. That does not give too much comfort at a time when the average dividend yield on the Nifty stocks has gone up to 1.85%. Most private banks have enjoyed steep price valuations but their dividend payouts have been extremely miserly. With growth likely to be tepid for some time, private banks will have to improve their dividend yields to keep the markets interested. Valuations are looking reasonable in terms of P/E but not in terms of dividend yield. Once that is done, you can be sure that these stocks are undervalued. You still must only stick to the quality names.