scorecardresearchHDFC-HDFC Bank Merger: Key Highlights

HDFC-HDFC Bank Merger: Key Highlights

Updated: 04 Apr 2022, 10:57 AM IST
TL;DR.

HDFC announced that its board has approved a composite scheme of amalgamation, for the merger of into and with HDFC Limited into HDFC Bank, and their respective shareholders and creditors. HDFC will acquire a 41 percent stake in HDFC Bank through the transformational merger, according to an HDFC Bank filing with the stock exchanges. The HDFC-HDFC Bank merger is expected to be completed by the second or third quarter of FY24. HDFC said the Proposed Transaction shall enable HDFC Bank to build its housing loan portfolio and enhance its existing customer base. Let's take a look at what its investor presentation says:

Overview: HDFC is India’s largest housing finance company with a total AUM of  <span class='webrupee'>₹</span>5.26 lakh crore and a market cap of  <span class='webrupee'>₹</span>4.44 lakh crore. It will merge into HDFC Bank, India's largest private sector bank by assets with market cap of  <span class='webrupee'>₹</span>8.35 lakh crore.

Overview: HDFC is India’s largest housing finance company with a total AUM of 5.26 lakh crore and a market cap of 4.44 lakh crore. It will merge into HDFC Bank, India's largest private sector bank by assets with market cap of 8.35 lakh crore.

The merger will make a full stack financial services conglomerate. They will have a combined balance sheet of  <span class='webrupee'>₹</span>17.87 lakh crore and  <span class='webrupee'>₹</span>3.3 lakh crore net worth enabling larger underwriting at scale.

The merger will make a full stack financial services conglomerate. They will have a combined balance sheet of 17.87 lakh crore and 3.3 lakh crore net worth enabling larger underwriting at scale.

Secured and long tenor product will lead to robust asset portfolio mix

Secured and long tenor product will lead to robust asset portfolio mix

Combination at the Right Time: Mortgages at the Cusp of Growth Enhancing Customer Lifetime Value

Combination at the Right Time: Mortgages at the Cusp of Growth Enhancing Customer Lifetime Value

Leveraging the Power of Branch Banking: Well Poised for Sourcing Deposits and Housing Loans

Leveraging the Power of Branch Banking: Well Poised for Sourcing Deposits and Housing Loans

Ability to Better Cross Sell with full suite of financial Products

Ability to Better Cross Sell with full suite of financial Products

Combination with Deep Multi-Decade Mortgage Underwriting Expertise Across Cycles

Combination with Deep Multi-Decade Mortgage Underwriting Expertise Across Cycles

A look at how seam less the integration between the two compaies will be

A look at how seam less the integration between the two compaies will be

Pro Forma Impact on Key Metrics

Pro Forma Impact on Key Metrics

Indicative Timelines and Key Approvals: Comletion of merger expected by the second or third quarter of FY24

Indicative Timelines and Key Approvals: Comletion of merger expected by the second or third quarter of FY24

FILE PHOTO: The headquarters of India's HDFC Bank is pictured in Mumbai, India, December 4, 2015. REUTERS/Shailesh Andrade/

FILE PHOTO: The headquarters of India's HDFC Bank is pictured in Mumbai, India, December 4, 2015. REUTERS/Shailesh Andrade/

First Published: 04 Apr 2022, 10:55 AM IST