HDFC-HDFC Bank Merger: July 1 Set as Effective Date, July 13 as Record Date
Written by Sanjay Kumar
News highlights
- HDFC Bank and HDFC merge, creating a financial services conglomerate.
- The merger enables HDFC Bank to underwrite larger loans for nation building.
- All HDFC Ltd. employees become part of HDFC Bank after the merger.
The merger between HDFC Bank and HDFC has been approved by the HDFC Bank board and will be effective from July 1. The board has set July 13 as the record date for the merger. This decision comes shortly after Deepak Parekh, the Chairman of HDFC, announced his retirement from the company.
The initial announcement of the merger between HDFC Bank and HDFC Ltd was made on April 4, 2022. It was stated that the merger would take place after obtaining the necessary consents and approvals, with a projected timeline of 15 to 18 months for the completion of the process.
During their respective meetings on June 30, the Boards of both companies confirmed that the merger would take effect from July 1, 2023.
Following the merger, HDFC Bank will no longer have an identified promoter. Additionally, this merger signifies the transformation of HDFC Bank into a comprehensive financial services conglomerate that offers a wide range of financial services through its subsidiaries, including banking, insurance, and mutual funds.
Moreover, the merger will enable HDFC Bank to underwrite larger loans, including infrastructure loans, contributing further to nation building and employment generation.
As a result of the merger, all employees of HDFC Ltd. as of the effective date will become employees of HDFC Bank.
After the merger, key subsidiaries of HDFC Bank will include HDFC Securities Ltd., HDB Financial Services Ltd., HDFC Asset Management Co. Ltd, HDFC ERGO General Insurance Co. Ltd., HDFC Capital Advisors Ltd., and HDFC Life Insurance Co. Ltd.
“This is a defining event in our journey and I’m confident that our combined strength will enable us to create a holistic ecosystem of financial services. We’re truly happy to welcome the talented team of HDFC Ltd. into the HDFC Bank family. I believe our journey will be defined by agility, adaptability, and a relentless pursuit of excellence.
As we navigate the path ahead, we will embrace challenges as opportunities, learn from our experiences, and strive to be the benchmark of success and integrity in the financial services industry,” said Sashi Jagdishan, CEO & MD, HDFC Bank on the completion of the merger.
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