HDFC-HDFC Bank Merger - 'One for the ages': HDFC Bank-HDFC board mark mega merger with group photo

HDFC and HDFC Bank board members post for a group photo. (Image credit: @@SandeepParekh/Twitter)

HDFC Limited, India’s largest housing finance company, will merge with HDFC Bank, the country's largest private sector lender HDFC Bank, according to a regulatory filing.

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

Soon after the announcement, Sandeep Parekh, an independent director on the board of HDFC Bank, shared a photo of the board of directors of both HDFC and HDFC Bank.

“One for the ages,” he tweeted.

One for the ages. pic.twitter.com/UganB6pz4A

— Sandeep Parekh (@SandeepParekh) April 4, 2022

The photo features Deepak Parekh, chairman of HDFC Limited, Atanu Chakraborty, part-time non-executive chairman of HDFC Bank and the bank’s board members including Sunita Maheshwari, Lily Vadera, Sandeep Parekh, Kaizad Bharucha and others.

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

"This is a merger of equals. We believe that the housing finance business is poised to grow in leaps and bounds due to the implementation of RERA, infrastructure status to the housing sector, government initiatives like affordable housing for all, amongst others," Deepak Parekh, Chairman HDFC Limited, said.

Parekh was echoed in same breath by HDFC Vice-Chairman and CEO Keki Mistry. "This merger will make HDFC Bank a large lender even by global standards. It will make more room for FII holding in HDFC Bank."

The HDFC-HDFC Bank merger is expected to be completed by the second or third quarter of the financial year 2024. HDFC said the proposed transaction shall enable HDFC Bank to build its housing loan portfolio and enhance its existing customer base.

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