Boards of HDFC Bank, HDFC give nod to merger plan
HDFC and HDFC Bank Friday approved the merger between the two institutions, creating the world's fourth-biggest bank by market value behind bulge-bracket Wall Street lender JPMorgan, China's ICBC and Bank of America. The merger takes effect Saturday.
All share and warrant holders of HDFC as of July 13 would be eligible for HDFC Bank stock. HDFC Bank will issue and allot eligible shareholders 42 new equity shares for every 25 held by investors in HDFC as on July 13.
Separately, July 12 has been set as the date for the transfer of non-convertible debentures (NCDs) of HDFC in the name of HDFC Bank. Commercial papers of HDFC will be transferred to HDFC Bank from July 7.
«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,» said Sashi Jagdishan, CEO, HDFC Bank. «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.» From a market capitalisation of less than '500 crore as a mortgage firm in the 1980s, the market value of HDFC and HDFC Bank combined will register a dominant Indian presence on the high table of global finance by creating the world's fourth-biggest bank, Bloomberg calculations showed.$200 B Group M-Cap The combined market cap of all HDFC listed entities currently is '16.63 lakh crore, or about $200 billion.
«The larger networth would allow greater flow of credit into the economy. It will also enable underwriting of larger ticket loans, including infrastructure loans and contribute further to nation building and employment generation,» the two entities said in a joint
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