The merger of HDFC and HDFC Bank would become the fourth-largest bank in the world
One of the most valuable banks in the world will be formed as a result of the merger of HDFC Bank and HDFC. According to a Bloomberg estimate, the combined bank would have the fourth-largest stock market capitalization in the world.
The combined company, valued at $172 billion, will surpass JPMorgan Chase, the Industrial and Commercial Bank of China, and Bank of America to become the fourth-largest bank in the world.
Beginning on July 1, the HDFC-HDFC Bank merger will be in effect. On June 30th, the boards of HDFC and HDFC Bank will convene to discuss and approve the merger.
On July 1, according to Parekh, the company and HDFC Bank would combine.
On April 4 of last year, HDFC Bank agreed to acquire the largest domestic mortgage lender in a deal valued at around USD 40 billion, establishing a financial services colossus in what was dubbed as the largest transaction in India’s corporate history.
The aggregate asset base of the proposed business would be close to Rs 18 lakh crore. More consumers than the whole population of Germany will be served by the new company, which will have around 120 million of them. Additionally, it will grow its branch network to more than 8,300 locations and boast a workforce of more than 1,77,000 people.
Once the agreement is in place, current HDFC shareholders will control 41% of the bank, making public shareholders the sole owners of HDFC Bank.
For every 25 HDFC shares a shareholder has, they will get 42 HDFC Bank shares.
According to an interview with Bloomberg TV with Suresh Ganapathy, head of financial services research for India at Macquarie Group Ltd.’s brokerage division, “there are very few banks in the world, which can at this scale and size, still aspire to double over a period of four years.”
According to him, the bank’s growth is predicted to be between 18 and 20 percent, and they want to increase the number of their branches over the next four years. The HDFC Bank will continue to be a very strong organization.
