HDFC Ltd, the housing finance company and HDFC Bank are all set to merge on the first day of July 2023, creating one giant entity. Why did you both decide to come together?
Merger HDFC Ltd. and HDFC Bank
HDFC Ltd and HDFC Bank decided to merge on July 1, 2023 to create one large entity. The market capitalization of this large entity will be 14.37 lakh crore.
The merger will benefit both customers and shareholders.
“Any employee under the age of 60 will be taken over and wages will not be reduced. HDFC Bank will need our people because they have no knowledge of mortgages,” said Deepak Parekh, President of HDFC. know.
What could be the reason for this merger? Let’s see.
Reason for merger
Three main factors contributed to the merger of the twin companies. Pervasively low interest rates have created a favorable environment for such a move.
Additionally, RBI has also reduced CRR and SLR requirements from 27% to 22%. In addition, the high liquidity in the system is also one of the contributing factors.
According to the source, there is an additional element. The closure of HDFC Ltd’s management was also a factor. Then the question of succession arose. Therefore, it can be concluded that merging HDFC doo with HDFC bank will bring about the most optimal synergistic advantages.
ALSO READ: What is the “message pin duration” feature that WhatsApp could introduce soon? How will it help?
Categories: Trends
Source: vcmp.edu.vn