'Zero leak of information': HDFC-HDFC Bank merger sparks internet frenzy

HDFC an HDFC Bank merger had been in news for a while.

Mortgage lender HDFC announced today that its board has approved merger of its wholly owned subsidiaries HDFC Investments Limited and HDFC Holdings Limited with HDFC Bank Limited.

HDFC will acquire 41 percent stake in HDFC Bank through the transformational merger, according to an HDFC Bank filing with the stock exchanges.

The HDFC-HDFC Bank merger is expected to be completed by the second or third quarter of of FY24. HDFC said the Proposed Transaction shall enable HDFC Bank to build its housing loan portfolio and enhance its existing customer base.

The merger surprised many as the news was kept under wraps and Twitter had a lot to say.

“In my 36 years of investing journey, never seen HDFC Ltd rise by 15% and HDFC Bank by 14% in one single session and that too on the same day. phew!” a banker tweeted.

“This merger has been discussed among investors for many years. The timing of it is a real surprise. There was zero leak shows the corporate governance of the HDFC group,” another user tweeted.

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— Vimal Chhadva (@vimsicle) April 4, 2022

None had a clue that the HDFC- HDFC Bank merger was on the cards!! Watertight

— K Sudarshan (@SudarshanEMA) April 4, 2022

Jupiter toh hum hai

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— Jitendra Gupta (@guptajiten) April 4, 2022

Definitely HDFC management would have discussed this with both RBI and government. Zero leak of information reflects well on all concerned.

— D.Muthukrishnan (@dmuthuk) April 4, 2022

HDFC and HDFC Bank merge and no one gets to know. On other hand, two founders shake hands over a beer in Bangalore and everyone knows by the end of the day

— Amrish Rau (@amrishrau) April 4, 2022

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— Ashish Rohilla (@AshishRohillax) April 4, 2022

With the parent company finally merging with the bank, the resultant entity will emerge as a powerhouse in the Indian banking industry.