new Delhi: The country’s largest housing finance company HDFC Limited will merge with HDFC Bank, the country’s largest private sector bank. HDFC Bank told the stock exchanges on Monday that the merger plan is subject to various regulatory approvals, including from the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI). As per the merger plan, public shareholders will hold 100 per cent of HDFC Bank upon completion of the deal, and existing shareholders of HDFC will hold 41 per cent of the bank.
Under the proposed deal, for every 25 equity shares of HDFC Ltd, 42 equity shares of HDFC Bank will be received. The company told the stock exchange, “After considering the recommendations and reports of the Audit Committee and the Committee of Independent Directors, the Board of Directors of HDFC Bank in its meeting held on April 4, 2022, has approved the Housing Development Finance of HDFC Investments and HDFC Holdings. Corporation Limited (HDFC Limited), and approved a composite scheme of merger of HDFC Limited with HDFC Bank.”
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Keki Mistry, Vice Chairman and CEO, HDFC said, “This merger will make HDFC Bank the largest lender by global standards. This will create more space for FII stake in HDFC Bank.” The HDFC-HDFC Bank merger is expected to be completed by the second or third quarter of FY 2023-24. HDFC has total assets of Rs 6.23 lakh crore, while HDFC Bank has assets of Rs 19.38 lakh crore. HDFC Bank has a large customer base of 68 million. (agency)
