HDFC Bank Ltd. on Friday introduced the completion of merger of Housing Development Finance Corporation Ltd. (HDFC) with itself, following the receipt of all requisite shareholder and regulatory approvals.
Both the entities had introduced a determination to merge on April 4, 2022.
The Boards of each the businesses at their respective conferences held individually on Friday famous that the merger could be efficient from July 1, 2023.
Pursuant to the share alternate ratio as per the merger scheme, HDFC Bank will subject and allot to eligible shareholders 42 new fairness shares of the face worth of ₹ 1 every, credited as totally paid-up, for each 25 fairness shares of the face worth of ₹2 every totally paid-up held by such shareholder in HDFC Ltd. as on the Record Date i.e., July 13, 2023.
Sashi Jagdishan, CEO & MD, HDFC Bank mentioned, “This is a defining event in our journey and I am confident that our combined strength will enable us to create a holistic ecosystem of financial services.”
“We are truly happy to welcome the talented team of HDFC Ltd. into the HDFC Bank family. I believe our journey will be defined by agility, adaptability, and a relentless pursuit of excellence,” he mentioned.
“As we navigate the path ahead, we will embrace challenges as opportunities, learn from our experiences, and strive to be the benchmark of success and integrity in the financial services industry,” he added.
Post the merger, HDFC Bank has no recognized promoter. It additionally marks the transformation of HDFC Bank right into a monetary providers conglomerate that provides a full suite of economic providers, from banking to insurance coverage, and mutual funds by way of its subsidiaries. So far, the Bank was a distributor for these merchandise.
“The merger of India’s largest Housing Finance Company, HDFC Ltd. with the largest private sector bank in India combines the strengths of a trusted home loan brand with an institution that enjoys a lower cost of funds,” the financial institution mentioned in an announcement.
“The larger networth would allow greater flow of credit into the economy. It will also enable underwriting of larger ticket loans, including infrastructure loans and contribute further to nation building and employment generation,” it added.
All staff of HDFC Ltd beneath the age of 60 as on efficient date turn into HDFC Bank staff. Over the previous months, the Bank has been getting ready for easy integration.
Post merger, the key HDFC Bank subsidiaries embrace HDFC Securities Ltd., HDB Financial Services Ltd., HDFC Asset Management Co. Ltd, HDFC ERGO General Insurance Co. Ltd., HDFC Capital Advisors Ltd. and HDFC Life Insurance Co. Ltd.
