How HDFC-HDFC Bank merger propels lender to the global stage

HDFC-HDFC Bank merger: All you need to know

1) On April 4, 2022, HDFC Bank agreed to buy its parent business, the largest specialised mortgage lender, in an all-stock transaction valued at $40 billion. And with the merger completed on Friday, has resulted in the formation of a financial services giant with a combined asset value of more than 18 lakh crore.

2) Merger of HDFC Bank Ltd and Housing Development Finance Corp creates the world’s fourth-largest bank, surpassing giants like HSBC Holdings Plc and Citigroup Inc.

2) As a result of the merger, HDFC Bank secures the top position among Indian banks, surpassing its counterparts State Bank of India and ICICI Bank.

3) The combined entity of HDFC Bank now boasts a customer base of approximately 120 million, which surpasses the population of countries like Germany.

4) The merger also leads to an expanded branch network, with the combined entity operating over 8,300 branches. The workforce of HDFC Bank expands significantly, with more than 177,000 employees. The integration absorbs almost the whole staff from HDFC.

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6) In terms of equity market capitalization, the newly merged HDFC Bank ranks fourth globally, trailing only JP Morgan Chase & Co., Industrial and Commercial Bank of China Ltd., and Bank of America Corp. This places HDFC Bank in direct competition with some of the largest American and Chinese lenders, positioning it as a formidable player in the global banking industry.

7) Now the key HDFC Bank subsidiaries include HDFC Securities Ltd, HDB Financial Services Ltd, HDFC Capital Advisors Ltd, HDFC Life Insurance Co Ltd., HDFC Asset Management Co Ltd, and HDFC ERGO General Insurance Co Ltd.

8)With the merger, HDFC Bank now offers a whole range of financial services through its subsidiaries.