The twin merger between the HDFC and HDFC Bank will cost 42 shares of HDFC Bank for every 25 shares of HDFC. The bank will be owned 100% by the public shareholders while the HDFC will be owned by the existing shareholders of the private lender. Nearly 41% of the existing shareholders will own part of HDFC Bank.
The reports suggest that in terms of the total assets of HDFC Ltd, it accounts for 6,23,420.03 crore, whereas, a turnover of Rs 35,681.74 and a net worth of Rs 1,15,400.48 crore is obtained on December 31, 2021. On the other hand, the assets of the HDFC Bank account for Rs 19,38,285.95 crore with a turnover of Rs 1,16,117.23 crore, ending on December 31, 2021. The reports further suggest that the sole aim of this merger is said to be for HDFC Bank to build its housing loan portfolio. With the merger, the customer base too will be worked upon and further, it will be enhanced.
In its official statement, HDFC Bank said, “The proposed transaction would create meaningful value for various stakeholders including respective shareholders, customers, employees, as the combined business would benefit from increased scale, comprehensive product offering, balance sheet resiliency, and the ability to drive synergies across revenue opportunities, operating efficiencies and underwriting efficiencies, amongst others,” it said.
