HDFC Ltd to merge with HDFC Bank

HDFC Bank. File Pic/iStock

The country's largest housing finance company HDFC Ltd will merge with the country's largest private sector lender HDFC Bank, according to a regulatory filing.

The scheme of amalgamation will be subject to various regulatory approvals, including from the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (Sebi), HDFC Bank said in the filing on Monday.

Under the proposed deal, share exchange ratio will be 42 equity shares each of HDFC Bank for every 25 equity shares held in HDFC Ltd. "... after considering the recommendation and report of the Audit Committee and the Committee of Independent Directors, the Board of Directors of HDFC Bank, at its meeting held on April 4, 2022 approved a composite scheme of amalgamation HDFC Investments and HDFC Holdings, into and with Housing Development Finance Corporation Limited (HDFC Ltd); and HDFC Ltd into HDFC Bank, and their respective shareholders and creditors," the filing said.

The merger of HDFC with private sector lender HDFC Bank will be good for the economy and it is expected to get the required regulatory approvals in 15 to 18 months, HDFC Chairman Deepak Parekh said on Monday.

Addressing a joint press conference with top executives of HDFC Bank, Parekh said a number of regulatory approvals are required to complete the process of merger of HDFC and HDFC Bank.

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