Merger: HDFC 4th most valuable bank of world
New Delhi, July 1
The merger of HDFC Bank and Housing Development Finance Corporation (HDFC) with effect from Saturday has created the fourth largest bank in the world in terms of market capitalisation. The total business of HDFC Bank stood at Rs 41 lakh crore at the end of March 2023 with the net worth estimated at over Rs 4.14 lakh crore. The combined profit of both merged entities was about Rs 60,000 crore at the end of March 2023 with combined assets of over Rs 18 lakh crore.
HDFC Bank will rank fourth in equity market capitalisation, next only to JP Morgan Chase & Co, Industrial and Commercial Bank of China and Bank of America.
Post the merger, customers of HDFC hope that their home loan rates may decline. This is because before the merger, HDFC was a non-banking finance company (NBFC). Loans by this category are generally more expensive than that of a bank which lends people’s deposits that are raised at cheaper rates of interest than NBFCs.
