The merger challenges the world's largest banks.

HDFC is a familiar name to people in India, but it is not yet widely known in the international market.

However, this will change, as the bank will enter the list of the world's most valuable banks after completing its merger with its parent company - Housing Development Finance Corporation (HDFC), a Mumbai-based private mortgage lender founded in 1977.

The $40 billion merger between India's largest private bank and its largest housing finance company was announced in April 2022. This was considered the largest transaction in Indian history, creating a financial services giant with a market capitalization of over $172 billion. This figure placed HDFC in fourth place, behind only JPMorgan, Industrial and Commercial Bank of China (ICBC), and Bank of America.

HDFC will surpass the two "giants" HSBC and Citigroup, and also leave behind its Indian peers, the State Bank of India and ICICI Bank, with market capitalizations of approximately $62 billion and $79 billion respectively, as of June 22nd.

With the merger taking effect on July 1st, the new HDFC Bank organization will have approximately 120 million customers (larger than the population of Germany), over 8,300 branches, and more than 177,000 employees.

HDFC Bank will be 100% owned by public shareholders, and existing HDFC shareholders will own 41% of the bank's shares. Each HDFC shareholder will receive 42 shares of HDFC Bank for every 25 shares they hold.

HDFC is projected to grow at 18-20% and plans to double its number of branches in the next four years, according to Suresh Ganapathy, head of financial services research in India at Australian financial services group Macquarie .

Nguyen Tuyet (Based on Quartz, Bloomberg, NDTV)

Source: https://www.nguoiduatin.vn/vu-sap-nhap-thach-thuc-cac-ngan-hang-lon-nhat-the-gioi-a615267.html