NCLT also said ‘yes’, now SBI’s competition bank will be formed, its size will be so big

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HDFC-HDFC Bank Merger: Government bank SBI is currently the largest bank in the country, but soon a private bank to compete with it is going to come into existence. The size of the bank that will emerge after the proposed deal is going to be bigger than many existing banks. This deal is the merger of the financial service provider company HDFC Ltd (HDFC Ltd) and its banking subsidiary HDFC Bank (HDFC Bank). It also got the approval of the National Company Law Tribunal ie NCLT on Friday.

Got these approvals

This is going to be the biggest deal (HDFC-HDFC Bank Merger) in the history of the country’s corporate world. The deal was approved by the Reserve Bank of India (RBI) in July last year. Both the major stock exchanges BSE and NSE have already approved the deal. Apart from these, the Competition Commission of India (CCI), insurance regulator IRDAI and pension regulator PFRDA have also approved it. Shareholders of both the companies have also said yes regarding the deal.

Biggest Corporate Deal

HDFC Bank is currently the largest private bank in the country. It had agreed on April 04 last year to acquire the country’s largest mortgage company HDFC Ltd. The value of this deal is being estimated at around $40 billion. In this context, this will be the biggest deal ever for the Indian corporate world. The entity that will emerge after the implementation of this deal will be one of the largest companies in the Financial Services Sector.

will be done like this

The combined company that will emerge after the merger will have an asset base of around Rs 18 lakh crore. The deal is expected to be completed by the second or third quarter of the financial year 2023-24. After completion of the transaction, HDFC Bank will have 100 per cent public shareholding. The existing shareholders of HDFC will hold 41 per cent stake in the bank. Every shareholder of HDFC will get 42 shares of the bank for every 25 shares held.

paisa reels

size will be so big

If we look at the balance sheet of December 2021, then by combining both it becomes Rs 17.87 lakh crore. On the other hand, if we talk about net worth, it will be 3.3 lakh crore rupees collectively. Today i.e. after the market closes on March 17, 2023, HDFC’s mcap on BSE is Rs 4.70 lakh crore, while HDFC Bank’s mcap is Rs 8.77 lakh crore. The size of the entity that will emerge after the merger is going to be more than double that of the second largest private bank, ICICI Bank. Its mcap is currently Rs 5.84 lakh crore.

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