HDFC Bank merges with mortgage lender HDFC Ltd, shares rise 10%

New Delhi l India’s largest private lender HDFC Bank will merge with HDFC Ltd, the country’s largest housing finance company, to form a financial services conglomerate.

Deepak Parekh, Chairman, HDFC Ltd said, “The resulting large balance sheet will allow underwriting of big ticket infrastructure loans, accelerate the pace of credit growth in the economy, promote affordable housing and increase the quantum of credit to priority sector.” will increase.” (Also Read: Get Rs 10,000 Benefit Even On Zero Balance)

As part of the deal, HDFC Ltd shareholders will receive 42 shares of the bank for 25 shares. The existing shareholders of HDFC Limited will hold 41% of HDFC Bank.

The shares held by the housing finance company in the lender will be liquidated, making HDFC Bank a wholly public company.

Indian equity market benchmark Sensex climbed 1202.71 points on Monday on the announcement of merger between HDFC Ltd and HDFC Bank. The 30-stock S&P BSE Sensex rose 1202.71 points or 2.03 per cent to 60,479.40 at 10 am. The broader Nifty 50 of the National Stock Exchange rose 354.65 points, or 2.01 per cent, to 18,025.10.

Meanwhile, HDFC and HDFC shares rose 13.57 per cent to Rs 2783.60 at 10 am, while HDFC Bank was trading 9.74 per cent higher at Rs 1654.20.

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