Rising interest rates are worrisome for consumers, who have to shell out more for food, clothing and shelter. But for banks like HDFC Bank, they're a boon. HDFC stock has risen lately and its technical ratings are outstanding.
MUMBAI (Reuters) -India's largest private lender HDFC Bank is buying its biggest shareholder in a $40 billion deal, the country's biggest ever, creating a financial services titan to better tap rising demand for credit. HDFC Bank's deal with housing finance firm HDFC Ltd, which owns about 21% of the lender, will build on its 68 million customers and expand its home loan portfolio significantly while also opening up the scope for larger loans. It will also help HDFC Bank shrink the gap with state-run lender and bigger rival State Bank of India while boosting competition in the home loan space as people step up purchases with pandemic woes receding.