HDFC, IDFC mergers may not trigger consolidation of PSU banks: Analysts

There is more money to be made in PSBs as RoA expansion has peaked for private banks, analysts said

The recent proposals of reverse mergers between HDFC Ltd and HDFC Bank, and IDFC Ltd and IDFC First Bank have been lauded by the Street.

Shares of HDFC Bank, for instance, hit an all-time high of Rs 1,758 apiece and those of HDFC hit a new 52-week high of Rs 2,926 on July 3 as the merger became effective between the two entities.

Similarly, shares of IDFC Ltd hit a fresh 52-week high of Rs 117 on July 5 after the Board, on July 3, vowed to complete its merger with IDFC First Bank this year.

Analysts, however, feel escalating