HDFC Bank, the country’s largest private bank, is owned by its parent company HDFC Ltd. going to merge with. But it will take more time. At the same time, a study has expressed the possibility that HDFC Ltd. Home loans from can also be cheaper. Learn how…
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HDFC bank (HDFC Bank) Its parent company HDFC Ltd. (HDFC Ltd.) is going to be merged. But it may have to wait a little longer. According to the bank, it will take more than 8 months to complete this merger and it is expected to be completed by September next year. On Friday, both HDFC and HDFC Bank held several meetings to seek approval from the shareholders on this merger.
HDFC Bank-HDFC merger will be unprecedented
According to the news of the agency, this merger will be unprecedented in the corporate history of India. This is a merger of more than $ 40 billion business, which is probably the biggest merger deal ever in India. HDFC had announced its merger with HDFC Bank in April this year, as well as announced that it would take 12 to 18 months.
Sasidharan Jagadeesan, CEO and Managing Director of HDFC Bank, told that the merger will take about eight to ten months. HDFC chairman Deepak Parekh said that the bank for merger, Reserve Bank of India (RBI) is working closely with and shareholders have nothing to worry about.
3500 people’s jobs will be saved
Regarding the situation after the merger, Sasidharan Jagadeesan said that more than 3,500 employees of HDFC will join the list of 1.61 lakh employees of HDFC Bank after the merger. Not only this, except a few branches, all 508 branches of HDFC Limited will later become part of HDFC Bank.
Home loan likely to get cheaper
After this merger, the customers of HDFC Limited can get good news. The reason being their home loan interest rates may be lower than the current interest rates. Current Status of HDFC Limited A Non-Banking Finance Company (NBFC) belongs to. But after the merger it will turn into a bank.
This can make the home loan available from the company cheaper. The reason being, bank loans are usually cheaper than NBFC loans, because banks hold people’s deposits. (Deposits) can accept.
ET has reported on the basis of the report of Research House Bernstein that this merger will bring down the cost of funds of HDFC Limited. It can come down to 0.4%. This will make it cheaper for the company to raise debt. It is possible that the company may pass on some of its benefits to its customers.
English Headline : HDFC Bank and HDFC merger needs 8 to 10 more months to complete, may home loan interest rate come down later.