HDFC Bank's weightage to increase in FTSE Emerging All Cap Index, lender likely to see inflows of up to Rs 4,150 crore
HDFC Bank's weightage increase: The weightage will increase in three phases: September, December, and March index reviews. The weightage will increase from 0.81 per cent to 1.51 per cent.
HDFC Bank's weightage increase: Shares of HDFC Bank were flat on Tuesday (August 8). The weightage of the lender, as per a Zee Business report, is expected to increase in the FTSE Emerging All Cap Index from 0.81 per cent to 1.51 per cent. The weightage will increase in three phases: September, December, and March index reviews. The estimated inflows post-weightage increase is between $450 and $500 million (Rs 3,700 crore–Rs 4,150 crore).
The September review will be announced on August 18, and the adjustments will be made on September 15.
The merger of HDFC Ltd and HDFC Bank was completed on July 1, 2023. It was one of the biggest mergers in Indian corporate history. The merger has created a financial services behemoth with a combined balance sheet of over $600 billion. The new entity will have a pan-India presence, with over 6,000 branches and 55,000 ATMs. It will also have a strong presence in the mortgage, insurance, and asset management businesses.
As per analysts, post-merger, HDFC Bank has become the second-largest bank after the State Bank of India in terms of credit. For the merged entity, mortgages will comprise more than 30 per cent, loans from commercial and rural banking will be around 25 per cent and more than 20 per cent from retail, with corporate loan books and others contributing 20 per cent and 5 per cent. READ MORE
HDFC BANK Q1 result
The private sector lender reported a 30 per cent year-on-year jump in standalone profit after tax (PAT) to Rs 11,951.8 crore for the quarter ended June 30, 2023, beating analysts' estimates. This is HDFC Bank's first earnings report since the completion of its mega-merger with Housing Development Finance Corporation (HDFC). The lender's net interest income (NII) — or the difference between interest earned and interest paid — grew 21.1 per cent to Rs 23,599 crore, according to a regulatory filing. Its net interest margin (NIM) — a key measure of profitability — remained flat sequentially at 4.1 per cent. CLICK HERE TO READ FULL REPORT
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Power of Compounding: How many years it will take to reach Rs 2 crore corpus if your monthly SIP is Rs 3,000, Rs 4,000, or Rs 5,000
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
01:12 PM IST