Wednesday, September 20, 2023 - Following a meeting between HDFC Bank and various brokerages to discuss the upcoming merger between HDFC and HDFC Bank, analysts have reported dissatisfaction due to a series of financial concerns. A key issue is a 17% decrease in net worth, mainly due to accounting amendments and policy harmonization.
These alterations have negatively impacted the net interest margin (NIM), largely as a result of surplus liquidity. Additionally, there has been a decline in the return on assets (RoA) from a consolidated standpoint.
One further point of concern is the growth in non-performing loans, predominantly stemming from HDFC's non-individual loan portfolio. This combination of financial issues has prompted the brokerages to lower their target prices for the stock.
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