HDFC-HDFC Bank Merger To Be Completed By July, Check Details

According to HDFC Bank Chief Financial Officer Srinivasan Vaidyanathan, the largest private sector bank in the nation would complete its reverse merger with parent business Housing Development Finance Corporation Ltd (HDFC) by July 2023. In a post-results analyst call, Vaidyanathan stated that the bank has applied for approval from the Insurance Regulatory and Development Authority of India (IRDAI) due to the change in regulators after announcing the bank's quarterly results for the period of January to March 2023.

The Reserve Bank of India, the Pension Fund Regulatory and Development Authority (PFRDA), the Competition Commission of India, the Securities and Exchange Board of India (SEBI), and the Indian stock exchanges BSE and the National Stock Exchange have all issued approval letters to HDFC Ltd.

We have applied to the Securities and Exchange Board of India for permission to replace the promoter and to notify orders for mutual funds, therefore we went to SEBI to get their approval. Due to a change in promoters on the insurance side, we also approached IRDAI, and we are currently awaiting their approval, according to Vaidyanathan.

It has been in the news for a while that HDFC and HDFC Bank are merging. In reality, the chairman of the largest mortgage company in the nation at the time, Deepak Parekh, had stated in 2015 that his company may consider a merger with HDFC Bank if the conditions were right.

On April 4 of last year, HDFC Bank agreed to acquire the largest housing financing company in a deal valued at around $40 billion, establishing a financial services colossus in what was dubbed as the largest transaction in India's corporate history. HDFC Vice Chairman and CEO Keki Mistry stated that the merger will provide the combined company with more prospects for growth on March 10 in an exclusive interview with Moneycontrol.

The goal is to gradually increase the number of bank branches offering house loans. According to Mistry, HDFC Bank (the combined firm) will have a greater scope for expansion in the housing credit market than HDFC alone.
Existing HDFC shareholders would own 41% of the bank once the agreement is in effect, making public shareholders the sole owners of HDFC Bank.