Merger between HDFC and HDFC Bank came into effect on July 1
The merger between the Housing Development Finance Corp Ltd (HDFC) and HDFC Bank came into effect on 1st July 2023, Saturday. This created the world’s fourth-biggest bank by market value behind J P Morgan, ICBC, and Bank of America. The merger was approved by the boards of directors on Friday.
All employees of HDFC will become HDFC Bank employees from today. Post-merger, the key HDFC Bank subsidiaries will include HDFC Securities Ltd., HDB Financial Services Ltd., HDFC Asset Management Co. Ltd, HDFC ERGO General Insurance Co. Ltd., HDFC Capital Advisors Ltd. and HDFC Life Insurance Co. Ltd.
The merger was announced about 15 months ago on April 4, 2022, ending two decades of speculation on their eventual union.
The National Company Law Tribunal (NCLT) approved the merger on March 17. The bank had received the first okay from the Reserve Bank of India in July 2022 which was followed by other regulators like the Securities and Exchange Board of India (Sebi), shareholders of HDFC and HDFC Bank, the Pension Fund Regulatory and Development Authority (PFRDA) and the Competition Commission of India (CCI).