HDFC Bank-HDFC merger: The merger of HDFC Bank and Housing Development Finance Corp will be completed on July 1, making HDFC Bank one of the most valuable banks in the world. The deal between the two companies is estimated to be around US$ 40 billion.
As of now, HDFC Limited is the largest private home loan lender in India. Post-merger, loans will remain largely unaffected, but there will be some changes for borrowers taking loans in future. The entire home loan portfolio of HDFC will be transferred to the bank.
What will customers get after the merger?
Customers will also have the option of linking their home loan to the External Benchmark Lending Rates (EBLR). Additionally, if the Reserve Bank of India (RBI) lowers the repo rate, the interest on these loans will come down.
According to HDFC Group Chairman Deepak Parekh, the boards of HDFC Bank and HDFC will meet after the market closes on June 30. Shares of HDFC Group will be delisted from the stock exchange with effect from July 13. Every shareholder of HDFC Ltd. will receive 42 shares of HDFC Bank for every 25 shares held by him.
Customers availing fixed deposits (FDs) will also not be affected by the upcoming merger and customers will not have to pay interest after the FD matures. Apart from this, customers can also avail the facility of withdrawal after the maturity of their FD.
If a customer wants to continue with his FD, he will get the interest offer on HDFC Bank Fixed Deposit.
Currently, HDFC has 550 branches across India, while HDFC Bank has 9,000 branches. After the merger, HDFC customers can access services from any branch of the bank and enjoy more facilities.