Mumbai-based HDFC Bank is converting about 530 offices that previously specialized in mortgages into ones with fully-fledged banking services in the coming months, said Kaizad Bharucha, the company's deputy managing director. He said his firm can now offer home loans at more than three times the locations following its merger with HDFC Ltd. and thats just the start.
Shares of HDFC, which has merged with HDFC Bank, surged over 3% as traders sought arbitrage opportunities ahead of the delisting date. The merger deal will create the world's fourth largest bank in terms of market value. Analysts expect the merger to result in strong growth and profitability, with a 15.7% market share. The bank is expected to see loan and deposit growth of around 17% and 19%, respectively. The merger became effective on July 1, with a share swap ratio benefiting HDFC shareholders. The record date for share allotment under the merger deal is July 13.
Hdfc-hdfc bank merger: Parekh said that the cross-selling of assets and liabilities of HDFC's home loan business will be done 'seamlessly' through their digital platforms.
FTSE Russell is expecting HDFC Bank to replace Housing Development Finance Corporation (HDFC) in the FTSE Global Equity indices after the completion of their merger. In non-market capitalisation weighted indices, HDFC will be removed but HDFC Bank will not be added. A tentative completion date for the merger has been shared, and once it is effective, FTSE Russell will issue a notice
The merger of housing finance major HDFC with HDFC Bank, the country's biggest private lender, will come into effect on July 1, according to HDFC Chairman Deepak Parekh.