The RBI has given its ‘no objection’ to the merger of HDFC with HDFC Bank, subject to certain market conditions. Once merged, the entity will be twice the size of ICICI Bank, currently the second-largest private bank in the country, and will be among the 10 most valued banks in the world. The proposed merger had earlier obtained approvals from BSE and NSE.
The proposals are subject to various statutory and regulatory approvals. This includes the Competition Commission of India (CCI), National Company Law Tribunal (NCLT), other applicable authorities and respective shareholders and creditors of the company. Once the approvals are in place, HDFC Bank will become a 100% public-owned entity.
Following the merger, the combined balance sheet will be Rs 17.87 lakh crore, with a net worth of Rs 3.3 lakh crore, as of December 2021 balance sheet. The merger is expected to be completed by the third quarter of FY 24, subject to approvals.