The main issue is elsewhere. Post the Merger, the merged entity became the base case. The erstwhile HDFC could do lot of transactions (especially to Real Estate Developers) as an NBFC. Those deals are not possible in a Scheduled Commercial Bank. Hence the base needs to be treated as lower as once those loans fall off, they cannot be replenished. Now if you apply the ratios on that revised lower base, things will look different and ratios will make sense. Highlighting this subjective aspect. Someone who has the data can do the number crunching.
Disclosure : Was my highest holding for more than 15 years but completely exited before the Merger on these grounds.
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