NEW DELHI: HDFC Ltd chairman Deepak Parekh on Monday called on finance minister Nirmala Sitharaman amid the proposal of a merger of the mortgage firm with its banking subsidiary HDFC Bank.
"Shri Deepak S Parekh, Non-executive Chairman -@HomeLoansByHDFC, along with Shri Atanu Chakraborty - Chairman @HDFC_Bank, call on Smt @nsitharaman," the office of the finance minister said in a tweet.
Last week, India's most valuable lender HDFC Bank agreed to take over the country's largest mortgage lender in a $40 billion deal, creating a financial services titan in the largest transaction in the nation's corporate history.
The proposed entity will have a combined asset base of around Rs 18 lakh crore. The merger is expected to be completed by the second or third quarter of FY24, subject to regulatory approvals.
Making the announcement, Parekh had said it is a ‘merger of equals', which will also benefit the economy as a larger balance sheet and capital base will allow a greater flow of credit into various sectors.
The merger of HDFC Bank and HDFC could create the second largest company in India by market capitalisation, leaving behind TCS, the crown jewel of the Tata group.
The HDFC twins now have a combined m-cap of Rs 13.99 lakh crore, exceeding Rs 13.94 lakh crore of TCS. Reliance Industries remains India's largest company by a huge margin, with its market cap standing at Rs 18 lakh crore.
