MUMBAI: HDFC Chairman Deepak Parekh said the mortgage lender has applied to several regulators, including IHKSebi and the RBI about his proposed merger at the HDFC bank. The process is expected to be completed in 12 to 18 months and a separate shareholders’ meeting will be called to approve the merger, he said.
In response to a shareholder question that many mergers had gone badly in the past, Parekh said the merger with the bank was the best thing that could happen to either institution. He said there is no overlap between what the home finance company and the bank are doing. He added that HDFC Bank’s board of directors had given assurances that all HDFC employees would be retained by the bank after the merger.
Parekh had previously said that it was not possible to give an exact timeline for the merger to be completed. “We try our best to see what permits we get and as soon as we get them, it will be mentioned on the bank’s website,” Parekh said.
He added that there would be no duplication. “The bank will need our premises and we will continue to issue mortgages from our premises,” Parekh said.
On the economy, Parekh said India’s growth is being driven by domestic consumption and the government is committed to increasing capital spending. “Capacity utilization is now at 74.5%, which is almost at the point where new investments start,” Parekh said. According to him, the rise in interest rates would not affect the demand for housing.
In response to a shareholder question that many mergers had gone badly in the past, Parekh said the merger with the bank was the best thing that could happen to either institution. He said there is no overlap between what the home finance company and the bank are doing. He added that HDFC Bank’s board of directors had given assurances that all HDFC employees would be retained by the bank after the merger.
Parekh had previously said that it was not possible to give an exact timeline for the merger to be completed. “We try our best to see what permits we get and as soon as we get them, it will be mentioned on the bank’s website,” Parekh said.
He added that there would be no duplication. “The bank will need our premises and we will continue to issue mortgages from our premises,” Parekh said.
On the economy, Parekh said India’s growth is being driven by domestic consumption and the government is committed to increasing capital spending. “Capacity utilization is now at 74.5%, which is almost at the point where new investments start,” Parekh said. According to him, the rise in interest rates would not affect the demand for housing.
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