Merger of two Elephants-
HDFC- HDFC
bank Merger:
The merger of HDFC and HDFC bank will create a
fourth largest bank in the world by Market cap. The synergy will be immense
after completion of this merger.
HDFC Bank and HDFC are two major players in the
Indian banking and financial services sector. HDFC Bank, founded in 1994, is one
of the largest private sector banks in India, known for its extensive range of
banking products and services. HDFC, established over four decades ago, is a
leading housing finance company that provides loans and financial solutions for
homebuyers. The recent announcement of their decision to merge has significant
implications for various stakeholders.
The merged entity will have 445 number of
additional branches more allover of India of HDFC and will be one stop solution
for housing loan apart from banking services. After the merger, HDFC Bank will
be 100 per cent owned by public shareholders, while existing shareholders of
HDFC will own 41 per cent of HDFC Bank.
Post the merger, there will be a combined
customer base of HDFC Bank and HDFC and they will be offered a number of
financial products—savings accounts, mortgages or home loans, life insurance,
general insurance, health insurance, credit cards, investment products and
personal loans.
The merger will create $ 40 billion merger, the
largest in Indian history. According to Bloomberg, the valuation of $172
billion, the merger will place the bank as fourth largest in terms of equity capitalization.
With the merger, HDFC bank loan book will become 22 trillion rupees,
behind only state bank of India, the country largest lender.
(Inputs
from various news article)
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