HDFC to merge with HDFC Bank to create third most valuable company in the country

HDFC Limited will merge with HDFC Bank, creating a banking behemoth. The merger is set to make the company the third most valuable in the country. HDFC will acquire a 41 percent stake in HDFC Bank through the transformational merger. HDFC Limited Chairman Deepak Parekh has described it as a merger of equals. He said mergers will enhance diversity of assets of the combined entity. Mr. Parekh said, this merger will help expand the customer base and build a product portfolio in the housing loan category.

The merger also triggered stock markets yesterday, as shares of HDFC and HDFC Bank witnessed heavy buying and settled with nearly 10 percent gains.