MC Exclusive | Cultural differences won't impact HDFC-HDFC Bank merger, says Keki Mistry

HDFC Vice Chairman and CEO Keki Mistry

The merger of Housing Development Finance Corporation (HDFC) and HDFC Bank will not face any issues in terms of cultural differences in operations and the bank will ensure that all employees of HDFC will be absorbed by the bank, said HDFC Vice Chairman and CEO Keki Mistry on 10 March in an interview with Moneycontrol.

"Every single employee from HDFC gets absorbed into the HDFC bank. We don't see too much of cultural differences between the two entities and all our staff. We have reassured that every single employee of HDFC will be taken in the bank," said Mistry.

Mistry further added that being a merger of two Banks and the merger of HDFC & HDFC bank is very different. "Because when two Banks merge, you have common products like housing loans, car loans, credit cards, etc. So there is a commonality of people and functions here," said the Vice-Chairman and Chief Executive Officer (CEO) of HDFC Ltd.

The HDFC-HDFC Bank merger, which was announced on April 4, 2022, is dubbed one of the largest mergers in India's financial sector. The merger, in terms of market capitalisation, is set to create the third-largest company in the country, with the amalgamated entity estimated to have a combined asset base of around Rs 18 lakh crore.

In January 2023, in an exclusive interaction with Moneycontrol, HDFC Chairman Deepak Parekh termed the shrinking arbitrage between non-banking financial companies (NBFCs) and banks in terms of RBI regulations as the key driver for the merger.