NCLT grants approval to merger of HDFC with HDFC Bank
(20 Mar 2023) Hrs IST

'We further refer to our letter dated December 8, 2022, vide which, we had informed that a joint company scheme petition had been e-filed on 7 December 2022 with NCLT, …. by HDFC Investments Limited, HDFC Holdings Limited, HDFC Limited and HDFC Bank, seeking the sanction of the NCLT for the scheme.

We now wish to inform you that the NCLT has, vide its order of today i.e. 17 March 2023, sanctioned the scheme,” HDFC Bank said in an exchange filing made after trading hours on Friday.

Keki Mistry, vice chairman and chief executive of HDFC, was quoted by the media saying that with the NCLT's approval, HDFC's merger process is expected to complete by the end of July.

HDFC had announced its merger with HDFC Bank on 4 April 2022. According to the merger scheme, HDFC Bank will become 100% owned by public shareholders and existing shareholders of HDFC will own 41% of HDFC Bank.

HDFC Bank is India's leading private sector bank. As of 31 December 2022, HDFC Bank's distribution network was at 7,183 branches and 19,007 ATMs/cash deposit & withdrawal machines (CDMs) across 3,552 cities / towns.

The private lender's net profit rose 18.54% to ₹ 12,259.49 crore on 25.97% increase in total income to ₹ 51207.61 crore in Q3 FY23 over Q3 FY22.

Shares of HDFC Bank shed 0.99% to currently trade at ₹ 1557 while those of Housing Development Finance Corporation (HDFC) lost 0.69% to ₹ 2543.80 on the BSE today.