The merged HDFC Bank entity will be listed on July 1. That certainly has done a lot for market sentiment and spurred us all the way to the 18,800 mark.
The overhang has largely been removed, now that we have a date and it is going to be the 10th largest bank in the world after the merger. It will have close to about 400 billion in assets. And as costs are going to come down because of the combined entity costs and therefore the margins are likely to move up. As a result of all this, I think that as we reach the date of the listing of the new entity, HDFC bank, because the arbitrage between HDFC and HDFC bank also is narrowing. HDFC bank from here on, it will trade on its fundamentals which is higher margins and higher loan growth.
I want to talk about Bajaj, especially in the backdrop of the launch of Triumph and Scrambler in London and soon to be launched in India on July 5th. Could this be that game changing moment that we had in the past when Maruti first came to India? Could it compete with the Royal Enfield by any chance?
Yes, Triumph is an iconic brand. It is coming back to India through Bajaj again and it is a well-known brand not just in India, but also in the UK and other overseas markets. Now that there is a fresh push, it clearly is a challenge to Royal Enfield and this brand will see a lot of traction because it is a name very well-known and adds to the export volumes.
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