Image Source : PTI The merger of the HDFC Bank and HDFC will be effective from July 1
HDFC Bank-HDFC merger: The merger of the HDFC Bank and the Housing Development Finance Corp will be completed on July 1, making HDFC Bank one of the world’s most valuable banks. The deal struck between the two companies is estimated at about USD 40 billion.
As of now, HDFC Limited is India’s largest lender of private home loans. Post the merger, the loans will remain mostly unaffected, but there will be some changes for customers availing loans in the future. The entire home loan portfolio of HDFC will be transferred to the bank.
What will customers get after the merger?
Customers will also get the option of linking their home loans with the External Benchmark Lending Rates (EBLR). Additionally, the interests for these loans will be reduced if the Reserve Bank of India (RBI) reduces the repo rate.
According to HDFC Group Chairman Deepak Parekh, the boards of HDFC Bank and HDFC will schedule a meeting on June 30 after market hours. The shares of HDFC Group will be delisted from share stock exchange from July 13. Every shareholder of HDFC Limited will receive 42 shares of HDFC Bank for every 25 shares held by them.
The upcoming merger will also not affect customers availing fixed deposits (FDs) and customers will not have to pay interests after their FD matures. Furthermore, customers can also avail the facility to withdraw money after their FDs reach maturity.
If a customer wants to continue their FD, they will receive the interest offer on HDFC Bank fixed deposit.
Currently, HDFC has 550 branches across India, while HDFC Bank has 9,000 branches. After the merger, HDFC customers can avail services from any branch of the bank and receive more facilities.
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