HDFC, HDFC Bank firm up after clarification

HDFC and HDFC Bank rose by 1.62% to 3.15% at 13:28 IST on BSE after HDFC said it has no proposal for merger with HDFC Bank.

HDFC (up 3.15% at Rs 1042.85) and HDFC Bank (up 1.62% at Rs 841.45), edged higher.

The S&P BSE Sensex was up 253.59 points, or 0.99% at 25,968.76.

Shares of HDFC had outperformed the market over the past one month till 21 July 2014, rising 4.58% compared with 2.43% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 15.29% as against Sensex's 12.96% rise.

Shares of HDFC Bank had underperformed the market over the past one month till 21 July 2014, rising 0.55% compared with 2.43% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 15.55% as against Sensex's 12.96% rise.

Earlier media reports had suggested that HDFC and HDFC Bank may merge themselves to create the second-largest bank by assets in the country after State Bank of India (SBI) if economies of scale prove beneficial to both.

HDFC clarified during trading hours today, 22 July 2014, that the media reports are incorrect and no such proposal has been considered by the board of directors of the corporation in the matter.

The media report is incorrect and no such proposal is being considered by the bank as on date, HDFC Bank said in a clarification after market hours on Monday, 21 July 2014.

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