Favourable terms

Lower cost of funds will help HDFC Bank after merger

The merger of the HDFC “twins” looks set to go ahead after the Reserve Bank of India (RBI) clarified some ambiguities, and offered a degree of relief to the merged entity, calming investors. The merger is now said to be scheduled for July this year. HDFC Bank is the largest private-sector bank in India, and it is one of the most highly valued ones. Its parent, HDFC, is the pre-eminent mortgage financier. The group subsidiaries include a listed and highly valued life insurance arm, a listed asset management company, an unlisted brokerage, and an unlisted general insurance firm, besides other