India’s HDFC among world’s most valuable banks post mega merger

India’s HDFC among world’s most valuable banks post mega merger

Ira Singh
1 July’23

In a groundbreaking move, HDFC Ltd, one of India’s leading housing finance companies, and HDFC Bank, one of the country’s largest private sector banks, have successfully completed their long-awaited mega merger today. The merger, which was first announced in late 2022, has now created a formidable financial institution that is poised to reshape the Indian banking and financial landscape.India’s HDFC rank among the world’s most valuable banks after completing a landmark merger.

The merger of housing finance major HDFC with HDFC Bank, the country’s biggest private lender, came into effect on July 1, according to HDFC Chairman Deepak Parekh. The merger reportedly marks the biggest transaction in India’s corporate history, according to recent reports.

The tieup of HDFC Bank Ltd. and Housing Development Finance Corp. makes the resulting entity fourth biggest in terms of equity market capitalisation, just behind JPMorgan Chae & Co., Industrial and Commercial Bank of China Ltd. and Bank of America Corp, according to sources.The tieup is valued at about $172 billion, Bloomberg reported.

The new entity will contain nearly 120 million customers, more than the population of Germany, according to estimates. The branch network will increase to over 8,300 along with a collective headcount of over 177,000 employees.

In terms of market capitalisation, the bank will leave behind its Indian competitors State Bank of India and ICICI Bank with market capitalisations of about $62 billion and $72 billion respectively, the Bloomberg report added while citing data up to June 22.

The HDFC Ltd and HDFC Bank merger is a testament to the dynamism and adaptability of the Indian financial sector. It sets a precedent for future consolidations in the industry and underscores the importance of collaboration and strategic partnerships in driving sustainable growth.