HDFC-HDFC Bank merger to be effective July 1, shares rise nearly 2%

By India Today Business Desk: HDFC Bank, the largest private sector bank in India, and housing finance company HDFC Ltd are set to complete their merger by July 1, according to HDFC Chairman Deepak Parekh.

The merger process will involve separate board meetings for both HDFC Bank and HDFC Ltd on June 30.

Parekh expressed optimism about the merger, stating that each branch of HDFC Bank will start selling mortgages, which is expected to boost the housing portfolio.

Also Read | RBI gives HDFC Bank selective regulatory relief post HDFC merger: Report

“The merger is expected to be complete by July 1. Both HDFC Bank and HDFC Ltd will have separate board meetings on June 30,” said Parekh.

“Each branch will start selling mortgages. We hope that the housing portfolio will be higher as the branches of HDFC Bank will do more,” Parekh said.

All necessary approvals for the merger have been obtained, and HDFC Ltd shares will be delisted by July 13.

The decision to merge HDFC and HDFC Bank was announced on April 4, 2022, with HDFC acquiring a 41 percent stake in the bank through the merger.

This long-awaited merger is expected to create a formidable entity in the Indian banking industry, with HDFC Bank becoming 100 per cent owned by public shareholders and existing HDFC shareholders owning a 41 per cent stake in the bank.

The completion of the merger marks a significant milestone for both organisations and holds the potential for enhanced value creation in the financial services sector.

Leave a Reply

Your email address will not be published. Required fields are marked *