On Monday, HDFC and HDFC Bank announced their boards had approved an all-stock amalgamation of the former into the latter, subject to regulatory approvals
Cost-wise, the housing loans would certainly come at a cheaper cost because the bank has low-cost deposits or Casa [current and savings account]
The merger of HDFC Bank and HDFC shall help the former become the most valuable bank outside of China and the United States
Analysts think there are multiple challenges such as impact of SLR/CRR/PSL compliance cost; the RBI's aversion to banks holding considerable stakes in para-banking businesses
Analysts say the RBI is unlikely to be comfortable with the size of the insurance operations the deal will give the bank
The merger is expected to be completed by Q2/Q3 of FY24
The merger is expected to be completed by Q2/Q3 of FY24
While the merger of HDFC twins will increase the bank's product portfolio and ability to cross-sell, there are financial and regulatory concerns that investors should know. Find out in this report
The Centre may increase the allotment of its shares in the IPO of LIC. More on that and other stories in our top headlines this morning.
Fifty-five years ago, Hasmukh Thakordas Parekh set up HDFC Ltd, which went on to become a marquee name in India Inc
Lender wants either be allowed to hold a 47.82 per cent stake HDFC Ltd in the insurer or buy additional stake in the company from the market
HDFC Bank's planned merger with its parent HDFC will make the bank twice the size of ICICI Bank, while bolstering market share and diversifying revenues, S&P Global Ratings said on Monday. In the biggest merger in the corporate history, India's largest housing finance company HDFC will merge with the country's largest private lender HDFC Bank to create a banking behemoth. Once the deal is effective, HDFC Bank will be 100 per cent owned by public shareholders, and existing shareholders of HDFC will own 41 per cent of the bank, according to stock exchange filings by the firms. S&P said the merger will likely result in significant market-share gains for HDFC Bank, given HDFC (the parent) is the largest financier of mortgages in India. It will raise HDFC Bank's loans by 42 per cent to Rs 18 lakh crore (USD 237 billion), increasing the bank's market share to about 15 per cent, from 11 per cent currently. "While HDFC Bank will remain the second-largest bank in India post-merger, it .
The finance companies, including housing finance entities, have to rely on wholesale fund-raising from the market or borrowings from banks, both of which are relatively costly
The country's largest housing finance company and the biggest private sector bank announced that their boards have approved an all-stock amalgamation of HDFC Ltd into HDFC Bank
The frontline indices jumped more than 2 per cent on Monday as the announcement of the plan to merge HDFC into HDFC Bank set their stocks soaring
Sashidhar Jagdishan, managing director and chief executive officer of HDFC Bank, tells Manojit Saha what the deal with HDFC means to the bank and the opportunities it provides
HDFC Bank will benefit from higher scale
The merged entity would be the second-biggest in terms of m-cap (Rs 14.05 trillion), ahead of TCS but behind RIL
The banking sector, according to analysts at ICICI Securities, has been underperforming at the bourses against the overall market in the last six months largely due to credit growth concerns
Weight of combined entity in indices is expected to be about 14%; schemes may have to remain underweight on the stock as the single stock exposure in portfolio has to be capped at 10%