July 1 to merge HDFC and HDFC Bank

 MUMBAI: HDFC, India's most memorable home loan foundation, which has assisted north of 1 crore Indians with purchasing homes since the last part of the '70s, will fail to exist after this end of the week and its business will be consumed by HDFC Bank. Deepak Parekh, who guided the group's success for four decades, stated that the boards of HDFC and HDFC Bank will meet on June 30 to complete the merger before July 1.

According to Parekh, HDFC shares are anticipated to cease trading on July 13. As a component of the consolidation, HDFC investors will get 42 bank shares for each 25 offers held. The merged entity would be worth $175 billion at current market prices, making it the fifth-most valuable bank in the world.

"All contributors will get the pace of interest they were guaranteed until the residency of the store," said Parekh. In a similar vein, the current rates will remain in effect until the loans are repaid. In any case, new advances and stores will be liable to banking guidelines.

HDFC's offices will become HDFC Bank's, and the mortgage lender's staff will also become bank employees as a result of the merger, which was announced in April 2022.

 The majority of the corporation's top executives would also retire from the organization they had led for years as a result of the merger. Parekh (78) said he would balance his boots after the consolidation, despite the fact that he is probably going to work with HDFC Establishment. Additionally, HDFC executives over the age of 60 will retire. Renu Sud Karnad, MD, and Keki Mistry, VC and CEO, would be included in this.

The Reserve Bank of India (RBI) has relaxed a previous rule that forbade education loan provider HDFC Credila from making additional loans after HDFC Bank acquired ownership. The limitations have now been loose to permit the establishment to allow new advances until its deal to Barings Private Value and ChrysCapital is closed.

The group's plans to open schools in Bengaluru, Pune, and Gurugram in the education sector would also come to an end as a result of the merger. HDFC Bank has been given two years to sell HDFC schools, which it will inherit from HDFC, following the merger. One of the conceivable outcomes would offer the schools to the current administration.

The RBI, the National Company Law Tribunal, the markets regulator Sebi, the insurance and pension regulators, the Competition Commission of India, and stock exchanges have all given their blessing to the merger.