HDFC-HDFC Bank Merger: After the merger of HDFC, HDFC Bank will become one of the largest banks in the world.
HDFC-HDFC Bank Merger: After the merger of HDFC, HDFC Bank will become one of the largest banks in the world. A few days ago, the board of directors of HDFC approved the merger with the private sector HDFC Bank. This deal should be about $ 6 thousand crore (Rs 4.53 lakh crore), which is the second largest business deal so far in 2022 this year. On completion of this deal, after the merger, the market cap of the bank can reach closer to $ 20 thousand crore (Rs 15.12 lakh crore), that is, in terms of market cap, it will compete with the world’s fourth largest bank China Construction Bank Corporation. .
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Despite increasing assets, balance sheet is half that of SBI
If there is no reduction in assets in the merger of HDFC and HDFC Bank, that is, all the assets remain, then the balance sheet of the bank will be Rs 25 lakh crore. Despite this, it will lag behind the country’s largest bank SBI as it is almost half of SBI’s balance sheet. However, it is still a huge balance sheet for a private sector bank.
HDFC and HDFC Bank will merge, know what is the complete plan
What will shareholders get upon merger?
Shareholders and creditors of the company will also be involved in this merger. The company has given this information on Monday. Under this deal, HDFC Bank will be 100% owned by public shareholders. Whereas the existing shareholders of HDFC Ltd will hold 41 per cent stake in HDFC Bank. HDFC shareholders will get 42 equity shares as per share exchange ratio in the combined company for every 25 equity shares.
(input: bloomberg)
