While regulatory approvals for the merger of Housing Development Finance Corporation (HDFC) and HDFC Bank are awaited, HDFC chairman Deepak Parekh on Tuesday mentioned the help and belief of shareholders are wanted “more than ever before”.
“My only ask of our stakeholders is for your patience as we navigate through the complexities of this transaction. More than ever before, we need your trust and support,” Parekh mentioned in a letter to the shareholders of HDFC throughout its forty fifth Annual General Meeting.
Stressing that belief is the muse of a profitable merger, monetary and human capital, together with a correct communication technique, are crucial, he mentioned.
“Fortunately, between HDFC and HDFC Bank, there is a natural affinity…It remains our every endeavour to be available and accessible to all our stakeholders to assuage concerns in an open and transparent manner,” Parekh mentioned.
The proposed merger is awaiting regulatory approval at this stage. Other than the Reserve Bank of India (RBI), the merger must be authorized by the Securities and Exchange Board of India, the National Housing Board, the Competition Commission of India (CCI), the Insurance Regulatory and Development Authority of India (Irdai), the Pension Fund Regulatory and Development Authority (PFRDA) and the National Company Law Tribunal (NCLT).
“We remain respectful of all our regulators and are confident that the outcome will be judicious and fair at a systemic level,” Parekh mentioned.
The merger will improve the lending capability of the group and can be anticipated to decrease prices.
“We have, at length, already articulated the rationale for the proposed merger, which takes cognisance of the future growth potential of the country, the evolving macro environment and changes in the regulatory architecture,” he mentioned.
Source: www.financialexpress.com”