HDFC Bk: Merger with HDFC, NIM compression near-term concerns, say analysts

HDFC Bank Q1 review: Issues with management's bandwidth in managing the balance sheet post merger remains key risks for upside, said Nomura

HDFC Bank Q1 review: HDFC Bank's steady performance in April-June quarter (Q1FY23) has underscored analysts' faith in the bank's promising long-term growth trajectory. However, merger overhang and its impact on operating expenses and return ratios may result in the stock's underperformance in the near-term, they said. Given this, select brokerages have cut their target price on the stock.

"HDFC Bank's at that phase where its superior business performance is not the driving factor for its re-rating. Investors are focused on the merger issue where we are unsure of its impact on the medium-term earnings as the liability transition has too