New Delhi, (thestates.news) | The decks have been cleared for the proposal of a merger of private sector HDFC Bank with its parent company HDFC Ltd. Its approval has been received from the bank regulator, the Reserve Bank of India (RBI). HDFC Bank gave this information to the stock market in a regulatory filing on Tuesday. HDFC Bank said in a statement that the letter of approval from the RBI for the merger proposal with its parent company HDFC has been received on July 4, 2022, in which the Reserve Bank has expressed its no objection to the scheme. However, the RBI has mentioned some conditions for this. It has already been approved by the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
According to HDFC Bank, some statutory and regulatory approvals will have to be obtained for this merger proposal. In fact, the merger proposal is subject to various statutory and regulatory approvals, including those from the Competition Commission of India (CCI), the National Company Law Tribunal (ACLT), other authorities, concerned shareholders and creditors of the companies, and others. It is noteworthy that the merger of HDFC Bank and HDFC Ltd was announced on April 4, 2022. It is noteworthy that this merger proposal is being considered as the biggest transaction in the corporate history of India. After the merger, HDFC Bank will be double the size of ICICI Bank. After the merger of HDFC and HDFC Bank, the combined assets of both the companies will be Rs 17.87 lakh crore, while the net worth of the company will be around Rs 3.3 lakh crore. The merger process is likely to be completed by the second or third quarter of FY2024.(HS):
