On Monday, April 4, HDFC Bank announced that its board of directors had authorised the merger of HDFC Investments and HDFC Holdings with Housing Development Finance Corporation Limited or HDFC Limited, as well as the consolidation of HDFC Limited with HDFC Bank, creating a financial giant. The merger is expected to increase the company's value to the third highest in the country. HDFC Bank's board of directors has also approved the execution of an implementation agreement between HDFC Limited and HDFC Bank. The merger of HDFC and HDFC Bank will increase the group's market share in mortgage business by lowering the cost of funds available for mortgage business, diversifying assets in the merged entity, and making the combined entity strong enough to offer more competitive products to their existing clients.
