Around 120 million customers, ahead of the population in many countries like Germany, are already being served by the HDFC Bank.
The merger of HDFC Bank Ltd and Housing Development Finance Corp has made it the world’s 4th biggest bank, overtaking giants like HSBC Holdings plc and Citigroup Inc. At the same time, as a result of this merger, HDFC Bank has taken over the top spot from state banks and ICICI Bank at home.
HDFC Bank’s main subsidiaries from the following merger are: HDFC Securities Ltd, HDB Financial Services Ltd, HDFC Asset Management Co Ltd, HDFC ERGO General Insurance Limited, HDFC Capital Advisors Ltd and HDFC Life Insurance Company Ltd.
HDFC Bank Ltd reported that their merger had been finished after the last board clearance, which suggests that HDFC ceases to exist as of July 1, 2023.
In April 2022, HDFC Bank declared to require the country’s biggest contract lender in a bargain estimated at almost $40 billion. Within the so-called greatest exchange in India’s corporate history, the merger will make a budgetary administrations titan, with the blended substance creating a financial service giant, with a total asset base of approximately Rs.18 billion for the combined company.
“This has also marked the transformation of HDFC Bank into a comprehensive financial services group offering banking, insurance and mutual funds through its subsidiaries,” it said.
The biggest banks in America and China will face a new challenge with the emergence of India’s own bank.
According to the presentation, when the merger was announced, an in-house home loan product could be offered by the lender to its clients because HDFC Ltd has a mortgage product available for just 2% of them.
The merger of HDFC Bank will create the fourth largest bank in the world, behind JP Morgan Chase, Industrial and Commercial Bank of China (ICBC) and Bank of America. After the bargain becomes viable from now on, HDFC Bank will be totally claimed by the open shareholders and the existing shareholders of HDFC Ltd will possess 41 per cent of the HDFC Bank. Each HDFC shareholder will get 42 offers from HDFC Bank for each 25 offers they hold.
Over 8,300 branches will also be added to its network. As all HDFC employees below 60 years of age will be taken on board, the entity is expected to employ more than 177,000 staff.
