I assume you are seeing the shareholding pattern on screener. If that’s the case, the numbers we are seeing is for the merged entity (HDFC Bank + HDFC Ltd)
If you can go to bse/nse and see HDFC Bank’s shareholding pre 2022, you will see that the promoters of HDFC Bank: HDFC Ltd and HDFC investments Ltd held ~26% of the shares, both were marked as foreign promoters. These shares are effectively cancelled after the merger. New shareholding pattern is adjusted for this.
The foreign shareholding is 60% as of Dec’23 (against the limit of 74%) and the float is now effectively 100% since the erstwhile foreign promoter’s shares are cancelled.
There a few technical issues like fii/fpi shareholding, msci weight, crr, slr, merger costs etc that will have a weight in the near term. If they overcome these challenges (which should happen sooner given the reputation of the management), people can finally focus on what’s relevant (NIMs, ROE etc). A long term shareholder like LIC is entering HDFC Bank knowing all these challenges should be done away looking being 5+years. Ofc, the NIMs will not be in 4.3% in the future but it’ll most certainly not be 3.4% in the long term. Patient long-term investors can make decent returns given the multiples have come off sharply
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