HDFC Bank Stock Surges: Why This Could Be Just the Beginning
Today's one of those rare days when the stock of HDFC Bank (NYSE: HDB) made a big move, and rightfully so. The Indian banking giant announced a megamerger today, which if completed could change the company's fortunes in terms of growth opportunities. HDFC Bank wants to merge with its parent, HDFC (which is listed in India), in an all-stock deal, after which HDFC will become a subsidiary of the bank.
This is a potential merger between the largest private bank and the largest housing-finance company (HDFC) in the world's second most-populous country. It's a huge deal, and it's no surprise that HDFC Bank shares rocketed Monday morning.
And this could be just the beginning of a bull run for HDFC Bank. It already has a clout like none other in India, and this merger, which is likely to be approved, will give it headway into a market with massive growth potential.
Source Fool.com
