2023-07-01 14:52:01
HDFC and HDFC Bank Announce Merger: Everything Customers Need to Know
CHENNAI: The merger of Housing Development Finance Corporation (HDFC) and HDFC Bank has been announced, and it is important for customers to understand the changes that will occur due to this merger. Starting from today, July 1, the merged entity will be known as HDFC Bank.
HDFC Bank, the country’s largest private bank, was the first private bank to receive permission from the Reserve Bank of India (RBI) in 1994. With the merger, HDFC Bank will now hold a 41 percent stake in HDFC, making it the fourth largest bank in the world.
It is essential to differentiate between HDFC and HDFC Bank. While HDFC stands for Housing Development Finance Corporation and is a financial institution specializing in home loans, HDFC Bank is an actual bank. Customers of HDFC should be aware that they have the option to withdraw their Pixit Deposit or continue with HDFC Bank, although the interest rate for Pixit deposit holders may decrease.
Similarly, individuals who have taken a home loan from HDFC LTD may experience changes in the interest rates. This is due to the difference in loan ratio calculations between non-banking financial institutions and banks. HDFC Bank will soon announce the new interest rates in this regard.
For HDFC bank account holders, there will be no change in the interest rates. Only home loan borrowers and Pixit deposit holders with HDFC LTD will be affected by the merger. Employees of HDFC LTD will now become employees of HDFC Bank and will carry out regular banking services.
In a letter to HDFC’s shareholders, HDFC Bank Chairman Deepak Parekh advised the bank to be patient and understanding towards home loan customers. He emphasized the importance of providing useful solutions and relieving any worries or complications related to home loans.
Customers are urged to have a clear understanding of mortgage loans and to approach home loans with caution and patience. The merger between HDFC and HDFC Bank signifies a significant development in the banking industry, and it is crucial for customers to be well-informed and prepared for any changes that may arise from this merger.
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