hdfc: No Adverse Observations from Bourses for Proposed Merger, says HDFC Bank

Private lender on Sunday said it got “no adverse observations” from the stock exchanges NSE and BSE on the proposed merger with parent HDFC. The merger is expected to be fully executed in the next 18 months.

“We would like to inform you that

Bank has received an observation letter with ‘no adverse observations’ from BSE and an observation letter with ‘no objection’ from the National Stock Exchange of India, both dated July 2, 2022,” the bank stated in an exchange filing.

The bank added that the merger is subject to several statutory and regulatory approvals, including those from the Reserve

, Competition Commission of India, the National Company Law Tribunal, and the respective shareholders and creditors of the companies.

HDFC and HDFC Bank in April proposed to merge to create a financial services behemoth of nearly ₹13 lakh crore in market valuation, ending nearly two decades of speculation.

According to HDFC Bank’s internal estimates, the merger would lead to an SLR-CRR (statutory liquidity ratio and cash reserve ratio) requirement of nearly ₹70,000 crore, along with an incremental ₹1.75 lakh crore of corpus for priority sector lending norms.

In the fiscal year ended March 2022, HDFC Bank reported nearly 19% growth in its net profit at ₹36,961 crore. Its balance sheet expanded 18.4% to ₹20,68,535 crore.

On asset quality, the bank’s gross non-performing assets stood at 1.17% of the gross advances as of March 31, 2022.