The day for the merger of HDFC Bank and HDFC Limited is near. From July 1, both the companies will merge, which will be the biggest merger in India. The value of this merger has been estimated at $ 40 billion, in which HDFC Limited will be dissolved and merged with HDFC Bank. HDFC Chairman Deepak Parekh said the merger would be effective from July 1, 2023. With the merger of these two companies, it will become the second largest financial institution after SBI. It is important to know here that what will be the impact of HDFC-HDFC Bank merger on borrowers and fixed deposit holders.
What will be the impact on fixed deposit holders?
If you have an FD with HDFC Limited, first check whether you have made a deposit through auto-renewal or not. After the merger, the new entity will be known as HDFC Bank. This will likely give depositors an option to withdraw or renew their deposits. HDFC’s interest rate is 6.56 per cent to 7.21 per cent for 12 months to 10 years. This rate is applicable from June 21. HDFC Bank’s interest rates range from three per cent to 7.25 per cent. These rates have come into effect from May 29.
HDFC Bank holders will not be affected by the merger of the two entities, but deposit holders of HDFC Limited will be affected. So it can offer depositors to withdraw money or renew the deposit afresh. From the point of view of the customers, this merger will provide them with a wider product range. HDFC customers can get credit card, CMS solutions.
How will home loan holders be affected?
HDFC Bank customers can now avail HDFC home loan solutions. Those who have taken loans will not be affected now. Their loans will be transferred to the newly formed entity. However, your home loan interest rates are likely to change. From October 2019, all banks will link interest rates to floating rate retail loans. Currently HDFC’s home loan rate is running at 8.50 per cent.
Impact on shareholders of HDFC-HDFC Bank
In this merger, the shareholders of HDFC will get shares of HDFC Bank in a fixed proportion. Apart from this, those investing in mutual fund schemes will also be affected.
