HDFC Bank – HDFC Merger Impact: The merger of HDFC with HDFC Bank will be effective from July 1, 2023. HDFC Group Chairman Deepak Parikh has announced this. The top management of HDFC Bank and HDFC have termed the merger in favor of both financial companies. Which will benefit both organization, shareholders, customers and economy. But a big question arises as to what will be the impact of this merger on HDFC’s depositors, home loan customers.
FD Effect of merger on consumers
Customers having FD with FDFC. After the merger, HDFC Bank will give these customers an option whether they want to break their FD and withdraw money or renew the FD. HDFC offers interest rates ranging from 6.56 percent to 7.21 percent on FDs of 12 to 120 months. While HDFC Bank is offering 3 to 7.25 percent interest on FDs from 7 days to 10 years.
Insurance benefits will be available
After the merger of HDFC with HDFC Bank, customers will get the benefit of insurance on their deposits. Deposit Insurance and Credit Guarantee Corporation to depositors Rs. Insurance cover is provided for deposits up to 5 lakhs.
HDFC Bank customers benefit from home loan products
HDFC is engaged in home loan business. After the merger, HDFC Bank customers will benefit from HDFC home loan products. At the same time, loans given to HDFC Home Loan customers will be shifted to HDFC Bank. All HDFC Bank customers can see changes in home loan interest rates. It is necessary to determine the home loan interest rates according to the repo rate based rate.
What will shareholders get??
After the merger of HDFC with HDFC Bank, as per the rules, shareholders of HDFC will get 42 shares of HDFC Bank for every 25 shares of HDFC. The record date of which may be 29 September 2023.
After the merger of HDFC Bank and HDSF Limited, HDFC Bank will become the 5th most valuable bank in the world. As of April 2023, HDFC Bank was ranked 11th in terms of market cap in the world. According to media reports, HDFC Chairman Deepak Parikh said that the boards of both companies will meet on June 30 during post market hours and seal the merger.
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