The National Company Law Tribunal (NCLT) on Friday approved the proposed merger scheme of Housing Development Finance Corp with HDFC Bank, according to an exchange filing.
Reacting to the development, shares of index heavyweights HDFC and HDFC Bank rose more than 1% each. HDFC closed up 1.14% at Rs 2,561.45 on the BSE while HDFC Bank gained 1.36% to close at Rs 1,572.55.
“We further refer to our letter dated December 8, 2022, vide which, we had informed that a joint company scheme petition had been e-filed on December 7, 2022 with NCLT… seeking the sanction of the NCLT for the scheme. We now wish to inform you that the NCLT has, vide its order of today i.e. March 17, 2023, sanctioned the scheme,” HDFC
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With the NCLT’s approval, HDFC’s merger process is expected to complete by the end of July, vice chairman and chief executive Keki Mistry told Bloomberg News on Friday. In a recent interaction with FE, Mistry had said that based on internal calculations, the mortgage major expected the merger to be completed by July.
HDFC had announced its merger with HDFC Bank
“…Post the combination, HDFC Bank’s customers will be offered mortgages as a core product in a seamless manner. HDFC Bank will also leverage the long-tenor mortgage relationship to offer varied credit and deposit products enabled through better insights throughout the customer life-cycle,” HDFC said in April last year.