In my opinion, the markets are digesting the merger. HDFC Ltd. had large holdings of housing loans, which had different dynamics from the traditional banking business of HDFC Bank. Therefore, the merger has caused some adjustments to NIM and other factors.
Having large institutional interest, HDFC Bank is also seeing some change of hands post-merger perhaps causing the current price pessimism.
HDFC Bank is a large stable blue-chip company, with no major imminent risks. It has a low beta in the industry.
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