HDFC-HDFC Bank Merger To Be Effective 1 July: HDFC Chairman

HDFC and HDFC Bank will hold meetings on 30 June to proceed with the merger, as confirmed by HDFC chairman Deepak Parekh on Tuesday. The merger is set to take effect on 1 July, and HDFC shares will be traded as HDFC Bank shares starting from 13 July. 

Parekh stated that the 30 June board meeting will be the final one for HDFC. In April, the Reserve Bank of India granted certain regulatory exemptions to HDFC Bank to facilitate a smoother merger process. 

This merger is unprecedented in India and will create a bank valued at USD 168 billion. It will have a significant impact on millions of customers and shareholders across both companies, including group insurance and asset management businesses. 

Under the merger agreement, HDFC Bank will issue 42 new shares for every 25 shares of HDFC. The mortgage lender aims to time the record date to minimise any gap between the suspension of HDFC shares and the allocation of HDFC Bank shares to its more than 740,000 shareholders.