HDFC Bank

Accordingly, the low macro-lending rates have pushed bond yields higher and stroked further inflationary fears, thereby, hurting rupee's prospects. "Rupee is expected to weaken a bit further as the central bank (RBI) has chosen to support growth and kept rates unchanged," said Sajal Gupta, Head Fx & Rates at Edelweiss.

The bank's net profit increased to Rs 10,055.2 crore during the period under review over the quarter ended March 31, 2021. Besides, the bank's net interest income (income earned less interest expended) for the quarter under review grew by 10.2 per cent to Rs 18,872.7 crore from Rs 17,120.2 crore earned during the corresponding period of FY21.

According to it, the merger between HDFC Bank and its shareholder HDFC may have long-term implications for the nation's banking and non-bank financial institution (NBFI) sectors. Besides, it said that the proposed merger could redefine the competitive landscape for banks, and increase the prominence of M&A among banks seeking to close the market-share gap with the merged HDFC Bank. "It could also influence the evolution of the NBFI sector, particularly for large entities that have nurtured banking ambitions amid tightening sector regulations," the agency said.

"The absolute return potential for the sector is likely to be moderate, basis growth reverting to medium-term baseline, lower growth dispersion in FY23E as compared to FY22E, and headwinds to multiple expansion based on increase in cost of capital and geopolitical risk premium, inflationary factors, and the lead-lag cycle of cost and pricing.

In a major development on Monday, housing loan firm Housing Development Finance Corporation (HDFC) on Monday approved the merger of its wholly-owned subsidiaries HDFC Investments and HDFC Holdings with the HDFC Bank. On the same day, both the shares rose nearly 10 per cent each. From Tuesday to Thursday, they erased entire Monday's gains and reached the pre-merger levels.

The proposed transaction intends to create a large balance sheet and net-worth that would allow greater flow of credit into the economy. It will also enable underwriting of larger ticket loans, including infrastructure loans, an urgent need of the country. The merger is expected to enable seamless delivery of home loans and leverage on the large base of over 68 million customers of HDFC Bank and inter alia improve the pace of credit growth.

Upon the merger scheme becoming effective, the subsidiaries or associates of HDFC will become subsidiaries or associates of HDFC Bank. The proposed transaction was to create a large balance sheet and net-worth that would allow greater flow of credit into the economy. It would also enable underwriting of larger ticket loans, including infrastructure loans.

Shares of HDFC Bank rose significantly on Monday after the Reserve Bank of India lifted the restrictions on the bank regarding its business generating activities planned under the 'Digital 2.0' programme. In August last year, RBI had relaxed the restrictions on the bank and allowed the lender to issue new credit cards.

A staggered rise in domestic transportation fuel prices are expected soon as Brent Crude oil price remains above $125 per barrel. At present, India imports 85 per cent of its crude oil needs. It is estimated that the high crude oil prices will raise prices of domestic transportation fuels in the range from Rs 10 to Rs 32 per litre.

India's key indices -- S&P BSE Sensex and NSE Nifty50 -- rose marginally in the opening session on Thursday possibly due to some value buying after the recent decline in the indices.  India's key indices -- S&P BSE Sensex and NSE Nifty50 -- rose marginally in the opening session on Thursday possibly due to some value buying after the recent decline in the indices.