HDFC Bank and mortgage lender HDFC Ltd announce 'merger of equals'

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

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.

HDFC Bank will be 100 per cent owned by public shareholders. Existing shareholders of HDFC Ltd will own 41 per cent of HDFC Bank. The transaction is expected to be completed