HDFC Bank – HDFC Merger Impact: The merger of HDFC with HDFC Bank will come into effect from July 1, 2023. HDFC Group Chairman Deepak Parikh has announced this. The top management of HDFC Bank and HDFC have termed this merger in favor of both the financial companies. Which will benefit both the organization, shareholders, customers and the economy. But a big question arises that what will be the effect of this merger on HDFC’s depositors, home loan customers.
Effect of merger on FD customers
Customers having FD with FDFC. After the merger, HDFC Bank will give the option to these customers whether they want to withdraw money by breaking their FD or renew the FD. HDFC is offering interest rates ranging from 6.56 per cent to 7.21 per cent on FDs of 12 to 120 months. While HDFC Bank is giving 3 to 7.25 percent interest on FDs ranging from 7 days to 10 years.
Will get the benefit of insurance
After the merger of HDFC with HDFC Bank, customers will get the benefit of insurance on their deposits. There is a provision of insurance cover for deposits up to Rs 5 lakh to depositors from the Deposit Insurance and Credit Guarantee Corporation.
HDFC Bank customers benefit from home loan products
HDFC is engaged in home loan business. After the merger, HDFC Bank customers will get the benefit of HDFC home loan products. At the same time, the loan to HDFC home loan customers will be shifted to HDFC Bank. All HDFC Bank customers can see a change in home loan interest rates. It is necessary to fix the home loan interest rates according to the repo rate based rate.
What will the shareholders get?
After the merger of HDFC with HDFC Bank, as per the rules, the shareholders of HDFC will get 42 shares of HDFC Bank for every 25 shares of HDFC. Whose record date can be 29 September 2023.
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