NHB has also approved the merger of two wholly owned subsidiaries of the housing finance company – HDFC Investments and HDFC Holdings Ltd., with HDFC.
NHB has also approved the merger of two wholly owned subsidiaries of the housing finance company – HDFC Investments and HDFC Holdings Ltd., with HDFC.
Mortgage major HDFC has got approval from National Housing Bank (NHB) for this Merger with subsidiary HDFC Bank, a regulatory filing said on Tuesday.
The filing said that the NHB has also approved the merger of two wholly owned subsidiaries of the housing finance company – HDFC Investments and HDFC Holdings Ltd. – with HDFC.
HDFC said in the filing, “We wish to inform you that NHB vide its letter dated August 8, 2022 has granted its no-objection to the scheme, as required by HDFC Ltd. for refinance facilities availed from NHB. “
The country’s largest mortgage lender by asset size has already received approval from the Reserve Bank, SEBI and stock exchanges (NSE and BSE) for the proposed merger between HDFC and HDFC Bank.
The merger plan is subject to various statutory and regulatory approvals including approval from Competition Commission of India, NCLT and the respective shareholders and creditors of both the companies.
The combined asset base of the merged entity will be around ₹18 lakh crore. The merger is expected to be completed by the second or third quarter of FY24.
Once the deal goes into effect, HDFC Bank will be 100% owned by public shareholders, and existing shareholders of HDFC will hold 41% of the bank.