The fourth-most valuable bank in the world will be formed as a result of the proposed merger of HDFC Bank and Housing Development Finance Corporation (HDFC), which is anticipated to go into effect on July 1. The combined company will be worth $172 billion. According to reports, it will trail JPMorgan Chase & Co, the Industrial and Commercial Bank of China, and Bank of America.
The merger has been described as the largest transaction in India's corporate history. The bank entered into an agreement to acquire the country's largest domestic mortgage lender in a deal valued at approximately $40 billion, establishing a formidable financial services powerhouse. The proposed merger will result in the creation of an entity with a combined asset base of approximately Rs 18 lakh crore.
Following the merger, the new HDFC Bank entity will have around 120 million customers, which is greater than Germany’s population. It’ll also increase its branch network to over 8,300 and boast of total headcount of more than 177,000 employees.
After the proposed merger, HDFC surges ahead of banks, including HSBC Holdings Plc and Citigroup Inc. The bank will also leave behind State Bank of India and ICICI Bank, with market capitalizations of about $62 billion and $79 billion.
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