Merger of HDFC Ltd and HDFC Bank
The biggest ever $40 billion merger deal between mortgage lender HDFC and India's largest private lender HDFC Bank is sure to create a financial giant of International level. The merger of HDFC Ltd with HDFC Bank will help in the government's vision of creating banks with global heft. The merger will create an entity that could fund large ticket loans and boost credit. The Boards of HDFC Ltd and HDFC Bank say that the merger will create long-term value for all stakeholders, including customers, employees and shareholders of both entities. The amalgamation of the two entities will provide further impetus to the Government’s vision of “Housing for All". Post the merger, HDFC Bank will be 100 per cent owned by public shareholder and all existing shareholders of HDFC will own 41 per cent shares of the bank. All subsidiaries of HDFC will shift to HDFC Bank. Once the merger receives regulatory approval from authorities, it will be the 2nd largest bank in India after the State Bank of India.
