HDFC Bank's merger delivered scale. Can Anup Bagchi deliver better returns?
Reported by CNBC-TV18 Markets, not nibnow. We are not the publisher of this story, only the source is.
The bank’s post‑merger growth has not translated into strong stock performance, and the new CEO faces pressure to improve profitability amid falling low‑cost deposits and a record‑low net interest margin.
HDFC Bank's post-merger journey has brought a sharp contrast between business growth and stock market performance. While profits, advances and deposits have expanded under Sashidhar Jagdishan, declining CASA deposits and a record-low net interest margin pose challenges. Incoming CEO Anup Bagchi must address these pressures and improve the bank's financial performance.
HDFC Bank recently merged with another large lender, creating a bigger institution whose scale can boost earnings, while CASA (current account savings account) deposits are a cheap source of funding and net interest margin measures the spread between loan earnings and funding costs, both critical to bank profitability.
- •Quarterly earnings releases for signs of improved profitability
- •Any regulatory or policy announcements affecting bank lending rates