HDFC Merger: HDFC will be included in the top banks of the world, know what will be the effect on you?
HDFC-HDFC Bank Merger: The country’s largest housing finance company HDFC Ltd (HDFC Ltd) and the country’s largest private sector bank HDFC Bank (HDFC Bank) are being merged.
HDFC Chairman Deepak Parekh said that due to the synergy of rules between banks and NBFCs, the path for the merger of HDFC Limited and HDFC Bank has become easier. After the merger of HDFC in terms of market cap, it may clash with China Construction Bank Corporation, the world’s fourth largest bank.
This process of merger of HDFC and HDFC Bank may take one to one and a half years to complete. Meanwhile, the customers of both the companies will continue to get the service as before. After the news of the merger (HDFC Bank and HDFC Merger), there are many questions in the minds of the customers of HDFC Bank and HDFC, to which we are answering you.
Till the merger process is completed, the functioning of HDFC Bank and HDFC Limited will continue as it is going on now. After the merger, the customers of both the companies can benefit from it. Experts say that both will benefit from the decision of merger of HDFC. “The mortgage business will benefit from HDFC Bank’s low-cost funds. HDFC Bank will benefit from HDFC’s experience in the mortgage business, which will ultimately benefit the customers,” the expert said.
HDFC Bank lower cost of funds
Since HDFC Bank has a low cost of funds, its home loan customers can benefit from this. HDFC Bank home loan customers will be able to get home loan at low interest. Another expert said, “After the merger of HDFC, new home loan customers can get loans at the same or lower interest rates.” Some experts say that it may take 12 to 18 months for the merger process to be completed, so it is not right to say about the interest rate right now.
large balance sheet
The combined balance sheet of the post-merger unit will be Rs 17.87 lakh crore while the total assets will be Rs 3.3 lakh crore. HDFC Limited is the country’s largest home loan company with an AUM of about Rs 5.26 lakh crore and a market cap of about Rs 4.44 lakh crore. The merger of HDFC will make the bank even bigger by global standards. This may create more space for FII stake in the bank. The company has taken this merger step to increase the home loan portfolio under the banking platform.
Customers will have convenience
After the merger of HDFC, now banking and non-banking facilities will be available under one roof. Having two businesses together can increase the congestion in the branch, but HDFC Bank will get home loans and loans in other areas.
Market Cap will increase
At present, Mukesh Ambani’s Reliance Industries is at number one and TCS is second in terms of market cap. The market cap of the company formed after the merger of HDFC may be higher than that of Tata Consultancy Services (TCS).
