In April of this year, HDFC Ltd announced a merger with its banking subsidiary HDFC Bank. “HDFC Bank has asked RBI for leniency regarding investments in all subsidiaries (of HDFC Ltd), including HDFC Ergo. Discussions are ongoing with RBI and we are awaiting the final response,” Parekh informed shareholders at a meeting convened by the National Company Law Tribunal (NCLT).

He said all HDFC Ltd investments will be transferred to the private lender in accordance with the existing regulations set by the RBI.

The lender has also asked RBI for the necessary leniency in meeting the deadlines for the statutory Liquidity Ratio (SLR) and Liquidity Reserve Ratio (CRR) requirements.

“If the deferral does not occur, the combined entity is expected to have sufficient liquidity and alternatives to meet the necessary funding requirements,” Parekh said. As of the completion of the merger, it is difficult to give an exact date as certain approvals are pending. However, he expects the merger to take effect by June 2023.

During the post-September earnings call with analysts, HDFC Ltd Vice Chairman and Chief Executive Officer Keki Mistry said the company had received approvals from various regulatory and regulatory bodies, including the Pension Fund Regulatory Authority of India (PFRDA ), Insurance and Regulatory Development Authority of India India (IRDAI), Securities and Exchange Board of India (SEBI), Competition Commission of India (CCI), Reserve Bank of India and stock exchanges.

On the listing of the general insurance arm HDFC ERGO, Parekh said both promoters will discuss and decide on its listing in due course. The home finance company also has no plans to list HDFC Credila, its student loan subsidiary, in the next few years.

He said that after the merger, all employees of the housing finance company will be transferred to the bank on terms “no less favourable” than those on which they were hired by HDFC Ltd.

As of October 31, 2022, HDFC Ltd had 3,897 employees and HDFC Bank had 162,992 employees, he said.