HDFC Bank Merger: HDFC and HDFC Bank become one from today, board approved
HDFC Bank: The merger of HDFC and HDFC Bank has come into force from today. The bank's board approved it yesterday. After this decision, there will be an increase in the m-cap of the bank. After the merger, HDFC Bank will become the fourth-largest bank in the world. Let us know what its effect will be seen on the stock market after the merger.
The month of July has started from today. HDFC and HDFC Bank will be implemented from today. The board meeting of the bank was held yesterday. The merger of HDFC and HDFC Bank has been approved in this meeting. The board has fixed July 13, 2023, as the record date.
This means that HDFC Bank will allot shares to HDFC shareholders on the 13th of July. Whereas, HDFC's non-convertible debentures will be transferred only on July 12. It is believed that after the merger, HDFC Bank will become the fourth-largest bank in the world.
You cannot buy or sell HDFC shares from July 13. Trading of HDFC shares will stop from July 13, 2023. After the merger of HDFC and HDFC Bank, shareholders will get 42 shares of HDFC Bank for every 25 shares of HDFC. After the merger of both parties, their market cap will be around Rs 14 lakh crore and the balance sheet size will be Rs 32 lakh crore.
It is estimated that the market share in deposits may increase to 4 percent by FY26. While the market share of Advance is expected to increase by 1 percent. This will bring down the cost-to-income ratio and it will reach around 30 percent.
The merger of HDFC and HDFC Bank will also see changes in Nifty. HDFC Limited will be removed from Nifty. The National Company Law Tribunal (NCLT) has also approved the merger of HDFC and HDFC Bank. The NCLT gave its approval on 17 March.
July 7, 2023, has been fixed as the record date for transfer in the name of the commercial paper of the corporation.
The chairman of HDFC Bank has given this information to the shareholder of the Housing Development Finance Corporation (HDFC).
