The merger between HDFC and HDFC Bank has created a financial services giant, making it one of the largest banking entities in the world.
HDFC (Housing Development Finance Corporation) is one of India's leading housing finance companies, providing a range of services such as home loans, insurance, and deposits. On the other hand, HDFC Bank is a renowned private sector bank that offers various banking services, including retail and wholesale banking, loans, and investment products.
With over 120 million customers and combined assets of ₹18 lakh crore, the HDFC-HDFC Bank merger is set to have a significant impact on its customers.
In this article, we will explore the effects of the merger on loan conditions, EMIs, net banking, fixed deposits, and other aspects that concern customers.
Impact on loan conditions
The merger between HDFC and HDFC Bank is not expected to have a direct impact on existing loan conditions for customers. Both HDFC and HDFC Bank have separate loan portfolios and will continue to manage their loans independently.
Customers will not experience any immediate changes to their interest rates, repayment terms, or account numbers. However, it's important to note that the merger may lead to future changes in loan conditions as the two entities align their operations.
EMIs and interest rates
Customers' existing EMIs (Easy Monthly Installments) and interest rates will not be immediately affected by the merger. The calculation and payment of EMIs will continue as per the terms agreed upon at the time of loan disbursal.
Similarly, the interest rates on loans will also remain unchanged for the time being. Any changes to EMIs or interest rates in the future will be communicated to customers by HDFC or HDFC Bank.
Net banking and account access
Customers will continue to have access to their loan accounts through the respective portals of HDFC and HDFC Bank. The merger does not impact the login credentials or access to net banking services for customers.
They can continue to use their existing login details to access their loan accounts and perform transactions online. In case there are any changes in the future, customers will be duly informed by the respective entities.
Fixed deposits and deposit insurance
Existing fixed deposit holders with HDFC will experience minimal changes due to the merger. The terms and conditions of their fixed deposits, including interest rates, tenure, and maturity instructions, will remain the same until maturity or renewal. Customers can continue using their existing deposit receipts and will not be required to take any immediate action.
Post-merger, HDFC fixed deposits will be covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC) guarantee, up to a maximum limit of ₹5 lakh (principal and interest). This ensures that customers' deposits are protected in the event of any unforeseen circumstances.
Branch services and premature withdrawal
Customers can continue to visit their existing HDFC branches for any services related to their fixed deposits. Additionally, they can also approach any branch of HDFC Bank for deposit-related services.
The merger does not affect the ability to make premature withdrawals from fixed deposits. Customers can follow the existing process, which includes visiting the respective branches or contacting customer support.
Renewal of FDs and taxation
The merger may bring changes to the renewal process for fixed deposits. If the renewal date of an FD falls beyond the effective date of the merger, the renewal will take place as per the terms and prevailing interest rates of the entity responsible for managing the deposit at the time of renewal. Customers will be notified about any changes or instructions for renewal by HDFC or HDFC Bank.
For taxation purposes, customers with deposits in both HDFC and HDFC Bank will have separate Tax Deducted at Source (TDS) returns filed under the respective entities' Tax Deduction and Collection Account Number (TAN). HDFC and HDFC Bank will provide separate TDS certificates to their customers.
With the merger, customers can anticipate a more streamlined and integrated experience across various touchpoints. The consolidation of customer data and systems can facilitate smoother transactions and quicker access to services.