Private bank to compete with SBI soon, NCLT approves merger of HDFC and HDFC Bank


New Delhi. The National Company Law Appellate Tribunal (NCLT) has approved the merger of HDFC Limited and HDFC Bank. After the approval of this merger proposal, the largest private sector bank is going to come into existence, which will compete with the public sector State Bank of India (SBI).

The National Company Law Tribunal (NCLT) on Friday approved the merger of the country’s largest private sector lender HDFC Bank and housing finance company HDFC Ltd. After the merger of these two companies, they will have assets of about Rs 18 lakh crore. This merger process is expected to be completed by the second or third quarter of the financial year 2023-24. Experts are considering this merger as the biggest merger of the country’s corporate world.

The merger deal was approved by the Reserve Bank of India in July last year. BSE and NSE of the stock market have already approved this deal. Apart from this, the approval of Competition Commission of India (CCI), Insurance Regulatory and Development Authority (IRDAI) and PFRDA has also been received. At the same time, the shareholders of both the companies have also given their consent regarding the deal.

It is noteworthy that after the closing of the stock market today, the market capitalization of HDFC Limited on BSE is Rs 4.70 lakh crore, while the market cap of HDFC Bank is Rs 8.77 lakh crore. Post completion of the transaction, the public will hold 100 per cent shareholding in HDFC Bank, while the existing shareholders of HDFC Limited will hold 41 per cent stake in the bank. Every shareholder of HDFC will get 42 shares of the bank for every 25 shares held.


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