HDFC Bank Shares Surge After Strong Q2 Update and $40 Billion Merger

HDFC Bank’s shares rose for the second day in a row on Thursday, buoyed by a positive Q2 update. The bank reported an 18.2% year-on-year increase in deposits for the July-September quarter, reaching Rs 21,73,000 crore, along with gross advances totaling Rs 23,54,500 crore. This growth follows the bank’s significant $40 billion merger with HDFC, which is recognized as the largest corporate deal in India to date.

Although HDFC Bank has seen its share value decrease by 5.5% this year, it has still managed to rank among the top five global lenders by market value. This is particularly noteworthy given that the Nifty50 index has risen by 6.4% during the same period.

Analysts from Morgan Stanley and Jefferies have reaffirmed their ‘buy’ ratings on the bank, with target prices of Rs 2,110 and Rs 2,030, respectively. Their optimistic outlook is based on the bank’s robust financial performance following the merger and promising future growth potential.

The merger with HDFC has served as a pivotal driver for HDFC Bank’s growth. It signifies not only India’s largest corporate transaction but also enhances the bank’s ability to expand its operations and solidify its standing in the global banking sector.