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English EditionEnglish Editionहिन्दीગુજરાતીमराठीবাংলাಕನ್ನಡമലയാളംதமிழ்తెలుగు
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PRIMESHOTSPrime VantagePrime DecoderCollections
Business News›Prime›Markets›Life after merger: HDFC twins have smartly rewarded
investors. Can the joint entity repeat the feat?


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INVESTING


LIFE AFTER MERGER: HDFC TWINS HAVE SMARTLY REWARDED INVESTORS. CAN THE JOINT
ENTITY REPEAT THE FEAT?

✖



Getty Images
A customer walks into an HDFC Bank branch in Mumbai on July 1, 2023.


SYNOPSIS

THE GROWTH IN UNSECURED LOANS IS EXPECTED TO BOOST HDFC BANK’S MARGINS AS THEY
ARE HIGH-YIELDING THOUGH RISKY. HOWEVER, THE LENDER’S UNDERWRITING STANDARDS,
TRACK RECORD, AND BENIGN CREDIT QUALITY ENVIRONMENT GIVE COMFORT TO INVESTORS ON
THE ASSET QUALITY FRONT.

If you had invested INR1 lakh each in HDFC and HDFC Bank in 2000, bang in the
middle of the dot-com crash, it would be worth INR1.9 crore today. Within a span
of 23 years, the shares of HDFC twins have recorded a compounded annual growth
rate of 22%. At 12%, the performance of BSE’s benchmark 30-share index, the
Sensex, pales in comparison. Practically, it’s almost impossible for most of us
to stay invested for as long as 23 years. But for the
BY
Alekh Angre

11 mins read, Last Updated:
Jul 6, 2023, 12:09 PM IST

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