Earnings growth was impacted by the merger and likely to remain muted in the near term
In the medium to long term, earnings growth is likely to rebound as margins are expected to expand gradually as the bank replaces market borrowings with low-cost deposits
While the private lender’s earnings will be materially impacted in the near term, merger does not permanently impair HDFC’s Bank’s long-term earning potential
Excluding the USD 60.4-billion HDFC Bank-HDFC merger, year-on-year deal value comparison would have been down by another 23 per cent, as per LSEG Deals Intelligence, formerly Refinitiv, one of the world's largest providers of financial markets data.
Housing Development Finance Corporation (HDFC), which has merged with HDFC Bank, and another housing finance company gave up their licences
The sharp correction, analysts said, was first majorly due to uncertainty around the merger and later due to merger math being weaker than initial estimates
Given its track record and execution capabilities, the bank has the capability to do well in terms of growth as well as profitability
Passive flows on account of merger will be neutral, said a note from IIFL Alternative Research
Post the merger of HDFC and HDFC bank, borrowers may have several queries regarding their existing or sanctioned home loans. Here are the answers to some of their key concerns.
Post-merger of HDFC-HDFC Bank, depositors would have several queries relating to terms and interest rates of existing deposits with HDFC, renewal of FDs, terms for premature withdrawal, submitting Form 15 G/H, TDS certificates, and more. Here are answers to some possible queries from depositors.
Dealers said the fall in yields on some papers was also due to a sharp easing of yields on government securities. In the last few weeks, the yield on a 10-year benchmark bond has eased more than 20 basis points.
If he gets the role, Kapil will lead a mammoth mortgage business, that currently includes gross individual loans of Rs 5 lakh crore ($61 billion) at HDFC and over Rs 1 lakh crore at HDFC Bank, according to the firms’ latest financial statements.
Set up in 2006, HDFC Credila is India's first dedicated education loan company. HDFC acquired control of the firm through two stake buys in 2009 and 2019 from DSP Merrill Lynch Capital and the Bohora family
The housing finance major did not disappoint on any of the three key performance parameters — loan growth, margins, and asset quality
Leeway on priority sector lending and continuity in investments should come as a relief to the bank stock
Subdued valuation presents a good opportunity to accumulate this long-term compounder
Billed to be the biggest merger in the history of Corporate India, the HDFC-HDFC Bank union is expected to be completed by the second or third quarter of FY24
The housing mortgage lender’s plus point is its ability to deliver a consistent performance across credit cycles and in the face of intense competition
eteran banker also said that the RBI rightly reined in inflation and that the days of jumbo interest rate hikes by central banks are behind us now.
Deepak Parekh says that with political stability, policy stability, food security, and vaccine security, India has more tailwinds than headwinds in a China-plus-one world.
Given the strong earnings growth outlook, HDFC Bank’s stock can outperform as merger-related uncertainties abate
At the time of announcing the merger on April 4 this year, the entities had said the merger will take 12-18 months.
Robust growth in the individual segment and lower credit costs bolster performance
Retail growth picked up in Q1FY23, and if the momentum sustains, FY23 could well turn out to be a comeback year for the bank
The volatility induced by the merger presents a good opportunity to accumulate this steady compounder.