The frontline indices jumped more than 2 per cent on Monday as the announcement of the plan to merge HDFC into HDFC Bank set their stocks soaring
Sashidhar Jagdishan, managing director and chief executive officer of HDFC Bank, tells Manojit Saha what the deal with HDFC means to the bank and the opportunities it provides
HDFC Bank will benefit from higher scale
The merged entity would be the second-biggest in terms of m-cap (Rs 14.05 trillion), ahead of TCS but behind RIL
The banking sector, according to analysts at ICICI Securities, has been underperforming at the bourses against the overall market in the last six months largely due to credit growth concerns
Weight of combined entity in indices is expected to be about 14%; schemes may have to remain underweight on the stock as the single stock exposure in portfolio has to be capped at 10%
There is a risk index trackers may have to sell HDFC, which is part of global indices currently
Profitability could to take hit in the short run
"It will take about 15 to 18 months. We are quite hopeful that we will get the approvals from the regulators," Parekh said
Parekh said he is confident that the regulators will approve the merger scheme announced earlier in the day
The merged entity could become the highest weightage single company in the Nifty 50 basket, the brokerage house said.
Mirroring the rally in the stock, market capitalisation of HDFC zoomed to Rs 4,85,691.18 crore
CLOSING BELL: Besides, Kotak Bank, HUL, IndusInd Bank, Tata Steel, L&T, and Sun Pharma were the other top gainers
The HDFC Bank and HDFC Ltd. merger is expected to be completed by Q2/Q3 of FY24
The share exchange ratio for the amalgamation of HDFC with and into HDFC Bank shall be 42 equity shares of face value of Re 1 each of HDFC Bank for every 25 equity shares of face value of Rs 2 of HDFC
During the March quarter, there was no sale of investments in subsidiary/associate companies, as per the filing
Markets regulator Sebi on Wednesday disposed of a show cause notice that was issued to Housing Development & Finance Corporation (HDFC) with respect to alleged violations of share transfer agent norms. The watchdog had conducted an inspection of HDFC, which was registered with the regulator as Category II Registrar to an Issue and Share Transfer Agent, on September 30 to October 9, 2019, for the period April 1, 2018 to July 30, 2019. It was alleged that HDFC had violated certain provisions of listing obligations and disclosure requirements regulations and/or norms pertaining to Registrars to an Issue and Share Transfer Agents. Passing an order on Wednesday, Sebi's Adjudicating Officer Geetha G said that no monetary penalty is warranted in respect of the allegations levelled in the instant matter and disposed of the show cause notice that was issued in December 2021. According to the order, out of the allegations made in the show cause notice, the noticee (HDFC) was in violation of
After falling 537.11 points to a low of 56,825.09 in morning trade, the 30-share BSE barometer staged a recovery in afternoon trade and climbed 231.29 points or 0.40 per cent to settle at 57,593.49
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