Housing Development Finance Corporation (HDFC) shareholders have approved the merger of HDFC Ltd. and HDFC Bank, the business announced in a statement to the National Company Law Tribunal (NCLT).
The merger was authorised by shareholders with an overwhelming majority, and no objections were submitted, according to the two firms’ counsel.
The Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), the Pension Fund Regulatory and Development Authority (PFRDA), and the Competition Commission of India (CCI) have already granted HDFC the necessary licences.
In addition, both stock exchanges had granted the business a “no objection certificate” (NOC).
The HDFC-HDFC Bank merger, announced on April 4, 2022, is regarded as one of the largest in Indian business history. In terms of market value, the merger is expected to produce the third-largest firm in the country, with the merged organisation expected to have a combined asset base of roughly Rs 18 lakh crore.
Upon the completion of the transaction and merger, current HDFC shareholders would own 41 percent of the bank.
In an interview with Moneycontrol in January 2023, HDFC Chairman Deepak Parekh cited the narrowing arbitrage between non-banking financial firms (NBFCs) and banks under RBI restrictions as the primary impetus for the merger.