Mortgage main HDFC has acquired approval from the National Housing Bank (NHB) for its merger with subsidiary HDFC Bank, a regulatory submitting stated on Tuesday.
The NHB has additionally authorized the merger of two wholly-owned subsidiaries — HDFC Investments and HDFC Holdings Limited — of the housing finance firm with HDFC, the submitting stated.
“We wish to inform you that the NHB vide its letter dated August 8, 2022, has granted its no-objection to the scheme, as required pursuant to the refinance facilities availed by HDFC Ltd from NHB,” HDFC stated within the submitting.
The nation’s largest mortgage lender by asset dimension has already acquired approval from the Reserve Bank, Sebi and the inventory exchanges (NSE and BSE) for the proposed merger between HDFC and HDFC Bank.
The merger scheme stays topic to varied statutory and regulatory approvals together with approvals from the Competition Commission of lndia, the NCLT and the respective shareholders and collectors of the 2 corporations.
The merged entity may have a mixed asset base of round Rs 18 lakh crore. The merger is anticipated to be accomplished by the second or third quarter of FY24.
Once the deal is efficient, HDFC Bank will probably be 100 per cent owned by public shareholders, and current shareholders of HDFC will personal 41 per cent of the financial institution.
