The merger of HDFC Bank and HDFC Ltd has got approval from the Reserve Bank of India (RBI) after getting approval from the Indian stock exchanges NSE and BSE. The merger of HDFC Ltd with HDFC Bank India is considered to be the biggest deal ever in corporate history. The total value of the deal will be around $40 billion.
In the information given by the bank to the stock market on Monday (July 4, 2022), it was said that HDFC Bank has received a letter from the Reserve Bank on July 4, in which the plan of merger from RBI has been given subject to certain conditions. Approved with. Further, the bank said that the proposed merger plan is yet to be approved by other regulators such as Competition Commission of India (CCI), National Company Law Tribunal (NCLT).
Country’s biggest merger: The merger of HDFC Bank and HDFC Limited is being said to be the biggest merger of the country’s financial sector so far. After this deal, HDFC Limited will be merged with HDFC Bank. As per the terms of the merger, for each 25 share share of HDFC Ltd, the shareholders will be given 42 shares of HDFC Bank. At the same time, the existing shareholders of HDFC will hold 41 per cent of HDFC Bank and HDFC Bank will be wholly owned by the public shareholders i.e. 100 per cent. HDFC Bank had a market capitalization of Rs 8.36 lakh crore as of 1 April 2022. At the same time, the market cap of HDFC was 4.46 lakh crores. After this merger, the size of HDFC Bank will be double that of ICICI Bank.
After this merger, the combined assets of both the companies will be 17.87 lakh crores and the net worth will be around 3.3 lakh crores. The merger is likely to be completed by the second or third quarter of FY2024. This merger was announced by HDFC Bank and HDFC Ltd on April 4 this year.
Customers will benefit after the merger: After the merger of HDFC Limited and HDFC Bank, customers will get facilities like banking and home loan at one place. At present, one has to go to different branches for loan and banking facilities. Along with this, HDFC Bank has also planned to open 2000 branches every year.