India’s largest housing finance company, Housing Development Finance Corporation HDFC Ltd, the mortage firm which has provided over 9 million home loans is all set to merge with HDFC Bank.
The chairman of HDFC, Deepak Parekh announced the merger on 4th April 2022. HDFC is based in Mumbai.
Customers of both HDFC and the bank will be the biggest beneficiaries. However, there the last few years there have been certain regulatory changes for banks and NBFCs, which have considerably reduced the barriers for a political mergerDeepak Parekh
While HDFC Bank will be the next biggest lender after State Bank of India, its size following the merger would be twice that of ICICI Bank, the third largest lender.
|Total Assets (₹ Cr.)||Market Capital(₹ Cr.)|
|State Bank of India||48.46||4,57,297|
The merger of housing finance leader HDFC with HDFC Bank is expected to create ₹17.8 lakh crore loan book, ₹ 3.3 lakh crore net worth and nearly ₹50,000 crore in annual profits with strong capital adequacy and asset quality ratios
HDFC Bank has over 6300 outlets, 17000 ATMs while HDFC Ltd has nearly 650 offices with 206 outlets of sales.