NCLT approves HDFC and HDFC Bank merger

The National Company Law Tribunal (NCLT) has approved the merger of HDFC and HDFC Bank, which is being described as the largest merger in Corporate India's history.

HDFC and HDFC Bank merger

Reetu | Mar 18, 2023 |

NCLT approves HDFC and HDFC Bank merger

NCLT approves HDFC and HDFC Bank merger

The National Company Law Tribunal (NCLT) has approved the merger of HDFC and HDFC Bank, which is being described as the largest merger in Corporate India’s history.

HDFC Ltd, the country’s largest housing financing provider, will merge with HDFC Bank, the country’s largest private lender, to form a banking giant.

HDFC Ltd had already got consent letters from the Central Bank of India, the Securities and Exchange Board of India (Sebi), the PFRDA, the Competition Commission of India (CCI), and India’s stock exchanges, the BSE and the NSE.

Previously, the tribunal approved holding a shareholders’ meeting to acquire permission for the planned merger.

Meanwhile, shares of HDFC Ltd and HDFC Bank were trading more than 1.7 percent higher on the BSE today, at Rs 2,575.95 and 1,578.20, respectively.

The merger of HDFC and HDFC Bank is likely to be completed in the second or third quarter of FY24. HDFC Vice Chairman and CEO Keki Mistry stated that the merger will provide the combined firm with greater growth potential.

“The goal is to gradually extend housing loans from more and more bank branches. The scope for expansion in home loans will be greater in HDFC Bank (the combined business) than in HDFC,” claimed the Government.

The merger of HDFC and HDFC Bank has been in the news for some time. In reality, Parekh stated in 2015 that his company would consider a merger with HDFC Bank if the circumstances were favourable.

On April 4, last year, HDFC Bank agreed to take over the largest domestic mortgage lender in a deal valued at almost $40 billion, establishing a financial services colossus. The planned firm will have a total asset base of around Rs 18 lakh crore.

StudyCafe Membership

Join StudyCafe Membership. For More details about Membership Click Join Membership Button
Join Membership

In case of any Doubt regarding Membership you can mail us at [email protected]

Join Studycafe's WhatsApp Group or Telegram Channel for Latest Updates on Government Job, Sarkari Naukri, Private Jobs, Income Tax, GST, Companies Act, Judgements and CA, CS, ICWA, and MUCH MORE!"