HDFC Bank, India’s leading mortgage lender, has an internet connection with HDFC Bank.
Permission was granted to private banks after 1991. At that time, the Reserve Bank was the first to approve HDFC Bank. The bank has been operating since 1994.
First, HDFC’s subsidiaries HDFC Holdings and HDFC Investments are affiliated with HDFC. After that, the next step is for HDFC to network with HDFC Bank. HDFC Bank will hold a 41% stake in the consolidated HDFC Bank. It has been announced that 42 HDFC Bank shares will be available if there are 25 HDFC shares.
It has been reported that the merger will take 18 months to complete, as it requires the approval of several regulatory bodies. No employees will be affected by this connection. Also, none of the HDFC branches will be closed. It has been announced that these will later become the HDFC Bank branch.
Following the merger, HDFC Bank will become the second largest Indian bank after SBI. HDFC Bank will be twice as large as ICICI Bank in third place.
Shashidhar Jagadeesan will be the CEO of the consolidated bank. Keki Mistry, who is currently the chairman of HDFC, will be on the bank’s board of directors.
Deepak Barek, who has been on the HDFC Board of Directors for over 45 years, is stepping down due to age.
According to the rules of the Reserve Bank, no one above the age of 75 can be on the board of directors. Therefore, Deepak Parekh did not join the board of directors. The home loan company HDFC was started in 1978. HDFC Bank was formed in 1994. HDFC is currently affiliated with HDFC Bank, a subsidiary of HDFC Bank. Deepak Parekh told reporters that it was as if the son was taking care of his father’s business.
Usually when such links take place, speculations and news about it will be released in advance anyway. But it is worth noting that no news was released until the announcement of this merger.
The Sensex and Nifty traded higher on Monday. The Sensex rose 1335 points to close at 60,000. The Nifty was up 382 points at 18000 points. HDFC Bank rose 10 percent. HDFC ended up 9 percent higher.
TCS has a current market cap of Rs 13.7 lakh crore. But if both the market value of HDFC Bank and HDFC Bank merge at the close of trading on April 4, it will become the second largest company with a market value of Rs 14.2 lakh crore.
—- Vasu Karthi