HDFC-HDFC bank merger: RBI approves HDFC Bank’s merger with parent HDFC

New Delhi: On Monday, HDFC Bank said the Reserve Bank of India (RBI) has approved its proposed merger with parent and mortgage lender Housing Development Finance Corp Ltd (HDFC). Under this merger, HDFC has decided to take 41 percent stake in HDFC Bank through transformational merger. HDFC Bank said this in the information given to the stock exchange.

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Press conference will be held at 11.30 am

A press conference will be held in Mumbai today at 11.30 am to announce the merger of HDFC and HDFC Bank. Today, if we look at the shares of HDFC, then all of them are seeing great growth.

Great rise in shares on the news of merger

Due to the news of the merger of HDFC and HDFC Bank, the shares of both are seeing a great rise. HDFC Bank is trading at a level of 1,640.05 with a jump of Rs 134.05 or 8.90 percent. At the same time, HDFC’s stock is trading at the level of 2745.50 with a jump of about 12 percent. HDFC Bank is doing business with the biggest boom in 2 years.

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HDFC Ltd Chairman Deepak Parekh said

Deepak Parekh, Chairman, HDFC Ltd. said, “This is a merger of equals. We believe that the housing finance business will grow rapidly due to government initiatives like implementation of RERA, state of the housing sector infrastructure, affordable housing for all. headed towards.”

For 25 shares of HDFC, 42 shares of HDFC Bank will be available

HDFC Bank told the stock exchanges on Monday that the merger plan is subject to various regulatory approvals, including from the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI). Under the proposed deal, for every 25 equity shares of HDFC Ltd, 42 equity shares of HDFC Bank will be received.

The company gave this information

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The company told the stock exchange, “After considering the recommendations and reports of the Audit Committee and the Committee of Independent Directors, the Board of Directors of HDFC Bank in its meeting held on April 4, 2022, approved the approval of the Housing Development Finance Corporation of HDFC Investments and HDFC Holdings. Ltd. (HDFC Ltd.), and approved a composite scheme of merger of HDFC Ltd. with HDFC Bank.”