HDFC-HDFC Bank Merger: The mega merger of HDFC Limited and HDFC Bank will not only benefit both the institutions, but their customers as well. All types of banking services will be available to the customers of the merged entity after the merger on a single platform.
Let us tell you that HDFC Limited is a housing finance company, which gives only home loans. Being a group company of HDFC Limited, HDFC Bank does not offer home loan service.
Customers will benefit like this
In such a situation, it happens that the customers of HDFC Limited get home loan service from here, but they have to depend on other banks for banking service. On the other hand, HDFC Bank customers have to resort to any other bank or institution for home loan.
With the merger, customers will benefit that they will get all types of banking services including home loan, vehicle loan, personal loan, retail loan on a single platform.
Deepak Parekh exclusive interview | Demand for houses will not end in India for next 50 years: Deepak Parekh
HDFC Chairman Deepak Parekh told that the joint balance sheet of the merged entity will be Rs 17.87 lakh crore and total assets will be Rs 3.3 lakh crore. After the merger, the market cap of HDFC Bank will be more than Rs 12.8 lakh crore.
Earlier, Parekh had also said that the HDFC-HDFC Bank merger will not affect the employees of HDFC Ltd.
Share transfer will happen like this
The bank has said in the information given to the stock exchange that this merger will benefit all stakeholders including customers, employees and shareholders in the long run.
After this merger, HDFC Ltd will have 41% stake in HDFC Bank. According to the deal, HDFC shareholders will get 42 shares of HDFC Bank for every 25 shares.
On the other hand, if we talk on the basis of assets, HDFC has total assets of Rs 6.23 lakh crore, while HDFC Bank has assets of Rs 19.38 lakh crore. Apart from this, HDFC Bank has a large customer base of 6.8 crores.
The culture of both the companies will have to merge
In a special conversation with Moneycontrol, Deepak Parekh said that we have to merge the culture of both the companies. Now all our employees will become part of HDFC Bank. There will be some difficulty during this. Now HDFC Bank will also have to handle the housing loan business, which is very emotional, personal and family. So we have to be very careful about our customers.
Demand for houses will not end for the next 50 years
Responding to this question, Parekh said that considering the growth, we needed more resources. The Indian debt market is yet to develop. Raising money is not easy for NBFCs. Here, the demand for home loans is increasing rapidly. So we also need to be careful.
He added, “We need to raise capital today itself for disbursement after five years. Today we are in a very good position. Tomorrow also we will be in a very good position. After two years we will be in a good position, but what happens after that? ? Because our business is growing fast. Housing demand in India is not going to end for the next 50 years.”