Housing finance firm hdfc is merging with which bank?

NEW DELHI: The merger of India’s most valuable lender and the nation’s largest mortgage financier to create what could be the world’s fifth-most valuable bank is inching closer to completion, with just one key step remaining that investors are watching for closely. Announcement of the so called ‘record date’ — HDFC Bank merged entity may see $150-200 mn outflows post MSCI largecap index inclusion MSCI is planning to add HDFC Bank to the largecap segment of MSCI Global Standard Indexes with an adjustment factor of 0.5, instead of the expected 1, leading to a potential outflow of up to $200m instead of an inflow. HDFC Bank's addition would have resulted in an additional inflow of around $3bn.The merged entity is likely to trade under the HDFC Bank ticker before July 20, bringing an end to the process that began in April 2022. The merger is unprecedented in India, creating a bank worth $168 billion and impacting over tens of millions of customers and shareholders across the two companies apart from group insurance and asset management businesses. A central team, with 3 members from each company, and nearly three dozen committees worked on a business integration plan. Meanwhile, legal approvals were sought from shareholders, banking, securities market and competition regulators as well as stock exchanges with the final nod granted by the company law tribunal in March. The approvals got done in good time and the integration of technology platforms is at an advanced stage, Keki ...

The board of directors of HDFC have approved the merger of India’s largest housing finance firm Housing Development Finance Corporation (HDFC) with India’s largest private sector bank HDFC Bank. Under the agreement, HDFC Bank will be 100% owned by public shareholders, and existing shareholders of HDFC Limited will own 41% of stake in HDFC Bank. The deal is expected to build the bank’s housing loan portfolio and enhance its existing customer base. The merger will be a two-part merger in which HDFC Investments Limited and HDFC Holdings Limited will merge with HDFC Limited as a first step. The next step of the merger will be the merger of HDFC Limited with HDFC Bank. The proposed deal is now subject to approval of regulatory bodies such as Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), the Competition Commission of India, and the National Housing Bank. HDFC Chairman Deepak Parekh said harmonisation of rules between banks and non-banks which reduces the regulatory arbitrage was one of the key factors which influenced the decision for merger between the two companies. Parekh said, “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. Over the last few years, various regulations for banks and NBFCs have been harmonised, thereby enabling the pot...

MUMBAI, June 9 (Reuters) - India's HDFC Bank Ltd The pace of growth in home loans will broadly mirror growth seen in HDFC's home loan portfolio, the first official said, declining to be identified as strategy discussions are not public. Individual home loans have grown at a compounded annual rate of 16% over the last five years, according to its investor presentation. The home loan segment is seen as a steady growth business with low delinquencies and has seen a boost since the pandemic. While the share of portfolio will oscillate based on growth in other segments, the group is comfortable with it staying at current levels, the official said. "We see home loans as a secured sticky product which can generate sticky deposits and spur lending into a number of home-related personal loan categories," the official added. The merger, announced in April last year and set to conclude in early July, will see India's largest housing financier merge with the bank it parented in 1994 - now the country's largest private lender. Post the deal, HDFC's 7.2 trillion rupee ($87.32 billion) portfolio will be transferred to the bank and make up about 30% of its overall loan book. This includes individual housing loans worth 6.02 trillion rupees. The housing loan business will not function as a separate vertical, but HDFC's front-line staff will continue to lead growth in that product, while expanding offerings to other retail loans as well, the second official said. The first official added th...

  Key Highlights: • Merger of India’s largest Housing Finance Company, HDFC Limited with the largest private sector bank in India, HDFC Bank. HDFC, over the last 45 years has developed one of the best product offerings, delivered in a cost effective manner and in an efficient turn-around time, making it a leader in the housing finance business. • HDFC Bank will enable seamless delivery of home loans and leverage on the large base of over 68 million customers of HDFC Bank and inter alia improve the pace of credit growth in the economy. • The proposed transaction is to create a large balance sheet and net-worth that would allow greater flow of credit into the economy. It will also enable underwriting of larger ticket loans, including infrastructure loans -- an urgent need of the country. • HDFC Limited is a significant provider of home loans to the Low Income Group (LIG) and Middle Income Group (MIG) segment under the affordable housing initiatives of the Government of India. Access to housing finance for this category would be improved further on account of low cost funds available with HDFC Bank. • The Bank has a presence in more than 3,000 cities/town through its 6,342 branches, with about 50% of these branches in semi-urban/rural geographies in the country. Leveraging this distribution might, the proposed transaction would broad base the home loan offering, synonymous with the national objective of Pradhan Mantri Awas Yojana that intends to provide housing for all. M...

HDFC Bank will have the biggest home loan book in India after merging with parent Housing Development Finance Corporation by July, relegating State Bank of India, the country’s largest lender, to the second position. The merged entity will have a total home loan book of Rs 7.3 lakh crore, compared with SBI’s portfolio of Rs 6.4 lakh crore as of March 2023, a Moneycontrol analysis showed. HDFC’s home loan portfolio was Rs 6.25 lakh crore, whereas that of HDFC Bank stood at Rs 1.02 lakh crore. HDFC Bank’s relatively smaller home loan book was because the bank wasn’t active in the mortgage business and typically passed on home loan customers to the parent company. Also read: RBI allows HDFC Bank to hike stake in HDFC Life, HDFC ERGO to more than 50% Other banks with a significant home loan book include ICICI Bank with Rs 3.46 lakh crore as of March, Axis Bank with Rs 1.57 lakh crore and Punjab National Bank with Rs 81,863 crore. The merger is only about a month away, Sashidhar Jagdishan, managing director of HDFC Bank, said on an analyst call on May 24. “It's now just another four or five weeks before the big day that is going to be happening, which is the merger with HDFC,” Jagdishan said. The combined entity will have a total balance sheet of Rs 18 lakh crore and market capitalisation of Rs 14 lakh crore. Interest income Experts said the merger will boost the bank’s loan book and improve the net interest margin (NIM) too. NIM is the difference between interest income earned...

The Circuit Hosted by high-profile journalist Emily Chang, The Circuit is a fast-paced, dynamic series that lives at the intersection of culture, tech, entertainment, and business. Every week, Chang will go on location to meet the world’s most fascinating founders, influencers, and innovators, conducting intimate interviews and bringing audiences behind the scenes of the most impactful stories, launches, and trends Also streaming on your TV: HDFC Bank Ltd. has shortlisted veteran Arvind Kapil, its current retail assets head, to spearhead the home loans business post its mega-merger with India’s biggest mortgage financier Housing Development Finance Corp. Kapil, who has worked at India’s most valuable bank for almost a quarter of a century, recently met executives at the mortgage lender to discuss plans for the loan book post-merger, according to people familiar with the matter. If he gets the role, Kapil will lead a mammoth mortgage business, that currently includes gross individual loans of 5 trillion rupees ($61 billion) at HDFC and over 1 trillion rupees at HDFC Bank, according to the firms’ latest financial statements.

The board of directors of HDFC have approved the merger of India’s largest housing finance firm Housing Development Finance Corporation (HDFC) with India’s largest private sector bank HDFC Bank. Under the agreement, HDFC Bank will be 100% owned by public shareholders, and existing shareholders of HDFC Limited will own 41% of stake in HDFC Bank. The deal is expected to build the bank’s housing loan portfolio and enhance its existing customer base. The merger will be a two-part merger in which HDFC Investments Limited and HDFC Holdings Limited will merge with HDFC Limited as a first step. The next step of the merger will be the merger of HDFC Limited with HDFC Bank. The proposed deal is now subject to approval of regulatory bodies such as Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), the Competition Commission of India, and the National Housing Bank. HDFC Chairman Deepak Parekh said harmonisation of rules between banks and non-banks which reduces the regulatory arbitrage was one of the key factors which influenced the decision for merger between the two companies. Parekh said, “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. Over the last few years, various regulations for banks and NBFCs have been harmonised, thereby enabling the pot...

Idea Generation: Salehe Bembury Shoe designer and creative Salehe Bembury takes us on a journey from his childhood growing up in Manhattan, to an invaluable degree in industrial design, to working with some of the biggest names in fashion...before breaking off to make his own name. We see how Bembury is able to walk the line of business convention while taking his art to new heights, turning ordinary items into extraordinary footwear. Follow along as he lays out the blueprint for his career, and takes us all the way from his first sketch to his thriving personal brand, Spunge. Also streaming on your TV: HDFC Bank Ltd. has shortlisted veteran Arvind Kapil, its current retail assets head, to spearhead the home loans business post its mega-merger with India’s biggest mortgage financier Housing Development Finance Corp. Kapil, who has worked at India’s most valuable bank for almost a quarter of a century, recently met executives at the mortgage lender to discuss plans for the loan book post-merger, according to people familiar with the matter. If he gets the role, Kapil will lead a mammoth mortgage business, that currently includes gross individual loans of 5 trillion rupees ($61 billion) at HDFC and over 1 trillion rupees at HDFC Bank, according to the firms’ latest financial statements.

MUMBAI, June 9 (Reuters) - India's HDFC Bank Ltd The pace of growth in home loans will broadly mirror growth seen in HDFC's home loan portfolio, the first official said, declining to be identified as strategy discussions are not public. Individual home loans have grown at a compounded annual rate of 16% over the last five years, according to its investor presentation. The home loan segment is seen as a steady growth business with low delinquencies and has seen a boost since the pandemic. While the share of portfolio will oscillate based on growth in other segments, the group is comfortable with it staying at current levels, the official said. "We see home loans as a secured sticky product which can generate sticky deposits and spur lending into a number of home-related personal loan categories," the official added. The merger, announced in April last year and set to conclude in early July, will see India's largest housing financier merge with the bank it parented in 1994 - now the country's largest private lender. Post the deal, HDFC's 7.2 trillion rupee ($87.32 billion) portfolio will be transferred to the bank and make up about 30% of its overall loan book. This includes individual housing loans worth 6.02 trillion rupees. The housing loan business will not function as a separate vertical, but HDFC's front-line staff will continue to lead growth in that product, while expanding offerings to other retail loans as well, the second official said. The first official added th...

  Key Highlights: • Merger of India’s largest Housing Finance Company, HDFC Limited with the largest private sector bank in India, HDFC Bank. HDFC, over the last 45 years has developed one of the best product offerings, delivered in a cost effective manner and in an efficient turn-around time, making it a leader in the housing finance business. • HDFC Bank will enable seamless delivery of home loans and leverage on the large base of over 68 million customers of HDFC Bank and inter alia improve the pace of credit growth in the economy. • The proposed transaction is to create a large balance sheet and net-worth that would allow greater flow of credit into the economy. It will also enable underwriting of larger ticket loans, including infrastructure loans -- an urgent need of the country. • HDFC Limited is a significant provider of home loans to the Low Income Group (LIG) and Middle Income Group (MIG) segment under the affordable housing initiatives of the Government of India. Access to housing finance for this category would be improved further on account of low cost funds available with HDFC Bank. • The Bank has a presence in more than 3,000 cities/town through its 6,342 branches, with about 50% of these branches in semi-urban/rural geographies in the country. Leveraging this distribution might, the proposed transaction would broad base the home loan offering, synonymous with the national objective of Pradhan Mantri Awas Yojana that intends to provide housing for all. M...