hdfc merger: HDFC Bank could complete merger process early – Blue Barrows

is engaged with the regulators for a gradual compliance of reserve norms post its proposed merger with , and it expects to complete it a few months earlier than expected.

“More or less we think we are on the timeline. Maybe there is a (possibility of completing the merger process) a quarter or a few months early,” HDFC Bank chief financial officer Srinivasan Vaidyanathan told analysts.

“We had previously indicated September – call it Q2-Q3 (FY24) kind of a timeframe. Maybe the way it is going, it may be Q1-Q2,” he said.

On regulatory dispensation, he said that the bank is in touch with the regulator. “As regards to RBI exemptions, we continue to be in dialogue. There is no particular line of clarity (at this point). Conversation continues on that front,” he said in a post-earnings call with analysts Satursday.

The bank had sought permission from RBI to comply with regulatory requirements such as cash reserve ratio and statutory liquidity ratio in a phased manner.

On completion of the merger, Vaidyanthan said that the merger may be completed earlier than what was indicated previously.

In April this year, HDFC Bank announced its plan to take over its promoter Housing Development Finance Corporate in a deal valued at $40 billion. It was initially said that the merger would be completed by the second or third quarter of the next financial year.

Last Friday, the National Company Law Tribunal (NCLT) gave its approval for holding a shareholders’ meeting for their approval on the proposed merger.

The shareholder meeting will be convened on November 25, 2022 for the purpose of considering and approving the Scheme of Amalgamation, HDFC said in a regulatory filing on Friday.

The entire process may take six to eight months after receiving shareholders approval, Vaidyanthan said.

The proposal received in-principle approval from the stock exchanges, Reserve

, Securities & Exchange Board of India, Pension Fund Regulatory & Development Authority and Competition Commission of India.

Consequent upon the merger, HDFC Bank would be fully owned by public shareholders, and existing shareholders of HDFC would hold 41% of the bank.

For every 25 HDFC shares, the holders will get 42 shares of HDFC Bank.