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HDFC Merger Update: HDFC Bank and HDFC are going to be merged in the corporate history of the country, but this work may take another 8 to 10 months. In this regard, HDFC Chairman Deepak Parekh (Deepak Parekh, HDFC Chairman) has given information about the merger. HDCF Bank is expected to complete its merger with its flagship housing finance company HDFC Limited by September next year.
what the company said
According to media reports, both HDFC and HDFC Bank have organized a general meeting on Friday to seek the approval of the shareholders. In this meeting, the biggest merger of more than $ 40 billion in Indian corporate history has been discussed. On April 4, 2022, at the time of the announcement of the merger, both the companies had said that it may take 12 to 18 months.
what happened in the meeting
HDFC Bank Chief Executive Officer (CEO) and Managing Director Sasidharan Jagadishan said in the meeting, “We believe that considering past practices and past trends, it is prudent to announce the effective date. It will take about 8 to 10 months. He said that through better capital adequacy ratio of HDFC Limited, this merger will help in increasing the capital adequacy ratio of the new entity by 0.20 to 0.30 percent. Jagadishan said that more than 3,500 employees of HDFC will join the list of 1.61 lakh employees of the bank and barring a few, almost all the 508 branches of HDFC will also be merged. Both the meetings are chaired by Gautam Doshi, appointed by the National Company Law Tribunal (NCLT). Gautam said that a copy of the voting result would be made available to the NCLT by Saturday evening.
What did the company chairman say
HDFC Chairman Deepak Parekh (Deepak Parekh, HDFC Chairman) said in the meeting that HDFC Bank is working on merger with the Reserve Bank of India (RBI), but shareholders need not worry. Parekh clearly told the HDFC shareholders that he would not join the board of directors of HDFC Bank due to age conditions and Chakraborty would continue as the chairman of HDFC Bank.
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What did HDFC Bank say
HDFC Bank Chairman Atanu Chakraborty said that all subsidiaries of HDFC will become subsidiaries of the merged entity. However, there are some units which may not be part of the bank and will be disinvested. He said that approval will be sought from RBI and Insurance Regulatory and Development Authority of India (IRDAI) for the merger of subsidiaries.
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