HDFC Chairman Deepak Parekh to retire post HDFC-HDFC Bank merger

HDFC Chairman Deepak Parekh is set to retire from his current post on June 30 following the merger of housing finance major HDFC with the country's largest private lender HDFC Bank. The effective date of the merger will be July 1.  

Vice-Chairman and CEO Keki Mistry and HDFC MD Renu Karnad will be board members of HDFC Bank. 

While talking about the merger, which has been tagged as the biggest transaction in India's corporate history, Parekh told reporters that the boards of HDFC and the private bank will meet on June 30. The proposed entity will have a combined asset base of around Rs 18 lakh crore. 

From July 1, all centres of HDFC Ltd will become HDFC Bank and smaller centres will also be used as service centres. 

Parekh said the securities will stop trading on July 13, and the merged entity is expected to start trading on July 17. 

"HDFC-HDFC Bank merger will be effective on July 1. The boards of HDFC and the private bank will meet on June 30 post to clear and approve the merger. It will be the last board meeting of HDFC," Parekh told reporters in Mumbai. 

From July 1, HDFC Bank will be 100 per cent owned by public shareholders, and existing shareholders of HDFC will own 41 per cent of the bank. 

HDFC Bank will allocate 42 new shares for 25 shares of HDFC. The housing finance major said it will try to time the record date to ensure no gap takes place between HDFC shares being suspended and HDFC Bank shares being allocated to its over 740,000 shareholders.  

Talking about the new structure in the merged entity, Parekh said all employees below the age of 60 have been transferred to HDFC Bank branches. 

He added that there will be no pay cuts, and neither any employee has been offered a golden handshake due to restructuring. 

Parekh added that banks will continue giving out loans.  

Merger talks 

In April 2022, HDFC Bank announced to take over the country's largest mortgage lender Housing Development Finance Corporation (HDFC) in a deal valued at about $40 billion. After the merger, the new brand will create a financial services titan with the merged entity having a combined asset base of around Rs 18 lakh crore. 

At 4:30 pm, the shares of HDFC Bank were trading 1.39 per cent higher at Rs 1,658.25 apiece, while HDFC shares were up 1.53 per cent at Rs 2,761.85 apiece on the BSE. 

Also read: HDFC-HDFC Bank merger to be effective July 1, HDFC to be delisted on July 13: Deepak Parekh

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