hdfc hdfc bank merger why how when and who is going to be affected all you need to know rjv

HDFC is trying to strengthen itself further with HDFC Bank merger. The merger is likely to result in reduction of HDFC Bank’s unsecured loan to risk ratio and strengthening of capital base. On the question of the reason for this merger, HDFC’s Vice Chairman and Chief Executive Officer Keki Mistry told in an interview to Bloomberg that HDFC has been in housing finance for a long time, but after a time, HDFC’s merger with HDFC Bank is bound to happen. This decision has been taken for the betterment of HDFC. Because HDFC should do only housing loan business and the rest of the business should be done by HDFC Bank, this could not go on for a long time. This timing is perfect for the merger. There are many regulatory reasons for this, such as the terms and conditions of CRR, SLR are much easier today than 10-20 years ago.