Explained: Why are HDFC Limited and HDFC Bank merging, and what will be its impact?
HDFC-HDFC Bank merger: The transaction is expected to close over the next 18 months, subject to completion of regulatory approvals and other customary closing conditions.
HDFC Bank said that the transaction is expected to close over the next 18 months. (File Photo) HDFC Bank and HDFC Ltd on Monday announced the merger of the two entities, setting the stage for one of the biggest deals in the Indian financial sector. The announcement of the merger led to a sharp rise in the share prices of the two entities which were up by over 7 per cent in the early trading hours.
HDFC Bank said that the transaction is expected to close over the next 18 months, subject to completion of regulatory approvals and other customary closing conditions.
What is the plan of merger?
As per the transaction structure, HDFC Limited, India’s largest housing finance company with Assets Under Management (AUM) worth Rs 5.26 trillion and a market cap of Rs 4.44 trillion will merge with HDFC Bank, India’s largest private sector bank by assets with a market cap of Rs 8.35 trillion.
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