Soon after he declared the merger of HDFC with HDFC Bank, Deepak Parekh, the Chairman of the mortgage lender HDFC said that he had spent “two sleepless nights” prior to the big development.
The HDFC chief quipped, “After 45 years of housing finance and 9 million homes provided to Indians, we had to find a home for ourselves. We have found it within our own family and in our own bank.”
Under the proposed deal, shareholders of HDFC Ltd will receive 42 shares of the bank for 25 shares held. The companies expect the deal – subject to regulatory approvals – to be completed in the second or third quarter of the financial year starting in April 2023.
Mr Parekh further said that “This is a merger of equals. We believe that the housing finance business is poised to grow in leaps and bounds due to the implementation of RERA, infrastructure status to the housing sector, government initiatives like affordable housing for all, amongst others”.
“Housing finance business is poised to grow. The merger will accelerate the pace of credit growth,” he added further.
