Last year in April 2022 this merger deal was announced now the time came to take place this deal officially. This was a biggest deal ever in India. After the Merger of HFDC Bank and Housing Development Finance Corp LTD , Now HDFC Bank has been the world’s 4th largest Bank also HDFC Bank have left behind the some of the giants like – Morgan Stanley , HSBC Holding Plc and Citigroup . In India HFDC Bank has occupied the first place leaving behind the State Bank of India and ICICI Bank.
Customer Base
Talking about the customer base , HFDC Bank now have around 120 million customers, the no. of customers are more than the population of Germany. The Branches of HFDC Bank will now be more than 8,300. After the merger now HDFC have 1,77,000 employees because all the employee below 60 now will be added in HFDC Bank .
Market Capitalization
If we talk about equity market capitalization then Top three Banks are – JP Morgan Chase & Co. then Industrial and Commercial bank of China Ltd. then 3rd is Bank of America and now 4th position has been occupied by HFDC Bank . This bank has grown in India and set to challenge top 3 Banks with a valuation of $172 billion. This American and Chinese bank might face difficulty now.
Important dates
Board members of HDFC Bank and HDFC Ltd. decided 1st July 2023 would be the effect date of merger. 13th July 2023 has been set “record date” when the shares of HDFC’s shares with HDFC Bank shares. For every 25 shares of HDFC LTD. shareholders will get 42 shares of HDFC Bank. After this merger announced shares of HDFC has been rose more than 13% so far. July 12 is the official record date for transfer of non-convertible debentures of HDFC in the HDFC Bank’s name.
Who will lead the bank
Everyone thinking same so here we have the official updated where CEO of HDFC Bank Sashidhar Jagdishan will lead the Bank like before. However Keki Mistry and Renu Sud Karnad of HDFC LTD will be members of HDFC Bank.
Bank Voice
“Worldwide there are very few banks, which can at this scale and size, still aspire to double over a period of four years,” Suresh Ganapathy, head of financial services research for India at Macquarie Group Ltd.’s brokerage unit, said in a Bloomberg TV interview. The bank expects to grow at 18 per cent to 20 per cent, there is very good visibility in earnings growth, and they plan to double their branches in the next four years, he said. “HDFC Bank will remain a pretty formidable institution.”
“The lifetime value of a customer’s relationship with that bank just enhances when you start to put a mortgage into his product offering,” Sashi Jagdishan, the bank’s chief executive, said at the time.
Top 10 Banks in India , Market cap in crore listed below
- HDFC Bank (post-merger) 14,12,055.
- ICICI Bank Ltd 6,53,704.04
- State Bank of India 5,11,201.77
- Kotak Mahindra Bank Ltd 3,66,967.55
- Axis Bank Ltd 3,04,211.88
- IndusInd Bank Ltd 1,06,707.03
- Bank of Baroda 98,436.88
- IDBI Bank Ltd 59,482.29
- Punjab National Bank 56,882.91
- Canara Bank 54,750.45
About HDFC LTD
HDFC also known as Housing Development Finance Corp LTD . it was an biggest housing finance company in India. it was founded in 1977 mainly to focus on India’s business community. HDFC was promoted by ICICI. HDFC was an private sector mortgage lender in India based in Mumbai. The key people was Hasmukhbhai Parekh who played a vital role to established this mortgage company and to solve the housing shortage in India. Initially HDFC was dealing with mortgage but late after market analysis they started dealing with Life Insurance , General Insurance and Mutual Funds as well.
About HDFC Bank
HFDC Bank was founded in 1994 , this private bank was an subsidiary company of Housing Development Finance Corporation. Initially started in Worli ,Mumbai. The key people of the HDFC Bank was Atanu Chakraborty who is chainman and Sashidhar Jagdishhan who is playing role of CEO currently. HDFC Bank offers wide range of products like- Credit cards , Consumer banking , Commercial Banking , Finance and Insurance , Investment banking, Mortgage loans , Private Banking , private equity , Wealth Management.