HDFC Ltd chairman Deepak Parekh on Monday called union finance minister Nirmala Sitharaman over the mortgage company’s proposed merger with its banking subsidiary HDFC Bank.
“Shri Deepak S Parekh, Non-Executive Chairman – @HomeLoansByHDFC, with Shri Atanu Chakraborty – Chairman @HDFC_Bank, call Smt @nsitharaman,” the finance minister’s office said in a tweet.
Last week, India’s most valuable lender, HDFC Bank, agreed to take over the country’s largest mortgage lender in a $40 billion deal, creating a financial services titan in the most great deal in the country’s business history.
The proposed entity will have a combined asset base of approximately Rs 18 lakh crore. The merger is expected to be completed by the second or third quarter of FY24, subject to regulatory approvals.
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In making the announcement, Parekh said it was a “merger of equals”, which will also benefit the economy, as a larger balance sheet and capital base will allow for greater flow of credit in various sectors. The merger of HDFC Bank and HDFC could create the second largest company in India by market capitalization, leaving behind TCS, the crown jewel of the Tata Group.
The HDFC twins now have a combined m-cap of Rs 13.99 lakh crore, topping Rs 13.94 lakh crore from TCS. Reliance Industries remains India’s largest company by a huge margin, with its market capitalization standing at Rs 18 lakh crore.
(Edited by : Anand Singha)
First post: STI