HDFC-HDFC Bank Merger To Come Into Effect From July 1

HDFC Chairman Deepak Parekh confirmed on Tuesday that the merger of HDFC Bank with mortgage lender HDFC Ltd will come into effect from July 1. He added that boards of both the entities will meet in post-market hours on June 30 to approve the merger. 

The merger was announced last year in April which is expected to create a combined entity worth Rs 18 lakh crore. It had received selective regulatory relief from Reserve Bank of India (RBI) in April this year. National Company Law Tribunal (NCLT) had also approved the merger this year along with Insurance Regulatory and Development Authority of India (IRDAI) and Pension Fund Regulatory and Development Authority (PFRDA). 

From July 13 onwards, the shares of HDFC will start trading as HDFC Bank. Last trading day for shares of HDFC Ltd will be July 12. Both BSE and NSE had allowed the transfer of non-convertible debentures (NCDs) of HDFC to HDFC Bank in April this year. Securities and Exchange Board of India had also allowed the control of HDFC Asset Management Company to be transferred due to the merger. Following the merger, HDFC Bank will issue 42 new shares for 25 shares of HDFC. The bank has assured that it will ensure minimal disruption to customers and shareholders following the merger. It is expected that shares will be allocated to over 7,40,000 shareholders. 

The merger deal was valued at around Rs 3.2 lakh crore, with the deal being called one of the biggest transactions in Indian corporate history.