HDFC Bank and mortgage lender HDFC Ltd to merge

The HDFC Bank and HDFC Ltd. merger is expected to be completed by Q2/Q3 of FY24

India's largest private lender HDFC Bank will merge with housing finance firm HDFC Ltd, the companies said on Monday.

As part of the deal, shareholders of HDFC Ltd will receive 42 shares of the bank for 25 shares held. Existing shareholders of HDFC Ltd will own 41 per cent of HDFC Bank. Shares held by the housing finance company in the lender will be extinguished, making HDFC Bank a full-fledged public company, Reuters reported.

The subsidiaries and associates of HDFC Ltd will shift to HDFC Bank, the companies said in a regulatory filing. "The merger—subject to regulatory approval--is coming together of equals.