HDFC submits a merger request to the NCLT for HDFC Investments, HDFC Holdings, and HDFC Bank

8 Aug 2022 , 07:53 AM

On Saturday, HDFC Ltd said that it had submitted a merger request to the National Company Law Tribunal (NCLT) for HDFC Investments Limited and HDFC Holdings Limited, and HDFC Bank.

This is a component of the proposed merger between its parent company, mortgage lender Housing Development Finance Corporation Ltd., and HDFC Bank, the nation’s largest private sector bank by balance sheet (HDFC Ltd).

According to HDFC, a Joint Company Scheme is still subject to a number of legal and regulatory clearances, including those from the NCLT, the Competition Commission of India, and any necessary approvals from the shareholders and creditors of the participating companies.

In addition to other approvals, HDFC Bank has previously secured in-principle clearance from the Reserve Bank (RBI) for the merger with HDFC Ltd.

The parent-subsidiary merger is regarded as the largest business deal ever in India.

The merger plan between HDFC Bank and HDFC Ltd. was revealed in April of this year, under which the bank would acquire the mortgage lender for around USD 40 billion over the course of about 18 months.