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Saurabh Mukherjea believes that as HDFC Bank stabilizes and its numbers improve, institutional appetite will return. He mentions that without merger synergies, HDFC Bank is already a profitable bank with a 1.9% ROA. If the ROA increases to 2%, the bank's ROE could be around 18%. He also notes that HDFC Bank's operational delivery has been solid post-merger. Despite the consensus buy on HDFC Bank, there has been a reduction in institutional exposure, but Mukherjea expects the selling to abate and institutional investors to return.

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