HDFC-HDFC Bank merger: Brokerages see return ratios improving by FY25-26

Analysts think there are multiple challenges such as impact of SLR/CRR/PSL compliance cost; the RBI's aversion to banks holding considerable stakes in para-banking businesses

Investors booked profit in HDFC and HDFC Bank shares, cashing in on Monday's stupendous rally. The shares of the former slipped 2 per cent while those of the latter declined 3 per cent on Tuesday. In comparison, the BSE Sensex settled 0.7 per cent lower.

Shares of both these companies soared up to 10 per cent on Monday after Housing Development Finance Corporation found a home within the family. HDFC Bank and HDFC Ltd are set to merge, creating India’s biggest lending behemoth in terms of market-capitalisation.

On a pro-forma basis, the merged HDFC Bank’s total advances will be around