Housing Development Finance Corp (HDFC) is awaiting regulatory guidance on the path forward for its mega merger with HDFC Bank and needs shareholders’ trust and support “more than ever before” at this juncture, HDFC Chairman Deepak Parekh said in the company’s FY22 annual report.
“We have at length, already articulated the rationale for the proposed merger, which takes cognisance of the future growth potential of the country, the evolving macro environment and changes in the regulatory architecture,” Parekh said.
HDFC announced its merger with HDFC Bank on April 4. HDFC will acquire 41 percent stake in HDFC Bank through the transformational merger, according to an
exchange filing by the non-bank lender.
Parekh said despite the recent headwinds in the global macro landscape, India is on the cusp of an economic transformation. India should be able to double its home loans to around $600 billion within the next five years, he said.
“Despite the doubling of housing loans, India’s mortgage penetration would still remain low at an estimated 13% of GDP. Now is the time to ask ourselves what will it take for India’s mortgage to GDP ratio to cross 20% and beyond?,” Parekh said.
“Favourable conditions like rising income levels, improved affordability and fiscal support augur well for the demand for homes. Real estate in India is on an upcycle. Developers are now financially stronger and more disciplined,” he said.
HDFC today also called for an annual general meeting on June 30 to consider and approve re-appointment of Parekh as a Non-Executive Director of the Corporation, along with re-appointment of Renu Sud Karnad as MD for a period of two years.
Lastly, the Board of HDFC has also sought shareholders’ approval to issue non-convertible debentures (NCDs) amounting up to Rs 1.25 lakh crore on private placement basis, in more than one tranche, during a period of 1 year from the date of this AGM.
