HDFC chairman Deepak Parekh announced that the merger of Housing Development Finance Corporation (HDFC) and HDFC Bank will come into effect on July 1. Additionally, HDFC’s vice-chairman and CEO, Keki Mistry, stated that the delisting of HDFC’s stock will occur on July 13.
Merger of HDFC Bank and HDFC
Parekh mentioned that the boards of HDFC Bank and HDFC will convene on June 30 after market hours to finalize and approve the merger. He also noted that June 30 will mark the final board meeting of HDFC. Following the announcement, HDFC shares experienced a 1.50 percent increase, trading at Rs 2,760, while HDFC Bank saw a 1.30 percent increase, trading at Rs 1,656.40 on the BSE.
This merger between HDFC Bank and HDFC represents the largest transaction in India’s corporate history. The agreement for HDFC Bank to acquire the mortgage lender was made on April 4 of the previous year. The merger has been valued at approximately $400 billion.
Once the merger is completed, the combined entity will possess an asset base of approximately Rs 18 lakh crore. HDFC Bank will be entirely owned by public shareholders, and existing shareholders of HDFC will hold a 41 percent stake in the private lender. As part of the merger, every HDFC shareholder will receive 42 shares of HDFC Bank for every 25 shares they currently hold.
More About HDFC Bank
HDFC Bank, also known as Housing Development Finance Corporation Bank, is one of the largest private sector banks in India. It was established in 1994 and is headquartered in Mumbai, Maharashtra. HDFC Bank offers a wide range of banking and financial services to individuals, businesses, and corporates.
Here are some key aspects and offerings of HDFC Bank:
- Retail Banking: HDFC Bank provides various retail banking services, including savings and current accounts, fixed deposits, recurring deposits, debit and credit cards, loans (such as home loans, personal loans, auto loans, and education loans), and insurance products.
- Corporate Banking: The bank offers a comprehensive suite of banking solutions for corporates, including working capital finance, trade services, cash management, treasury services, foreign exchange services, corporate loans, and advisory services.
- Digital Banking: HDFC Bank has been at the forefront of digital banking in India. It provides a robust online banking platform and mobile banking application that offer a wide range of services such as fund transfers, bill payments, account management, investments, and more.
- Investment and Wealth Management: HDFC Bank offers investment and wealth management services to individuals and corporates. It provides products like mutual funds, fixed deposits, insurance plans, and wealth management solutions to cater to the diverse investment needs of its customers
- NRI Banking: HDFC Bank has a dedicated NRI (Non-Resident Indian) banking division that caters to the banking and investment requirements of NRIs where it offers services like NRI accounts, remittances, investments, loans, and other specialized services.
- International Presence: HDFC Bank has a global presence and operates in countries such as Bahrain, Hong Kong, Dubai, and Singapore, among others, to cater to the banking needs of international clients.
