hdfc: HDFC merger to create a global banking behemoth: 12 reasons for the merger, BFSI News, ET BFSI 07/06/22,

07/06/22, 11:05 AM

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hdfc: HDFC merger to create a global banking behemoth: 12 reasons for the merger, BFSI News, ET BFSI 07/06/22, 11:05 AM

G%PC)%,12
Tamilnad Mercantile Bank
gets Sebi nod for IPO

I%PC)%,12
Yes Bank's insolvency
petition against Radius
Infra admitted
The merger of HDFC Ltd with HDFC Bank will help
in the government's vision of creating banks with
global heft. The merger will create an entity that
could fund large ticket loans and boost credit.
I%PC)%,12
PM Modi to banks: Focus
The Boards of HDFC Ltd and HDFC Bank say that on bigger role in global
the merger will create long-term value for all business

stakeholders, including customers, employees and

shareholders of both entities. The amalgamation
of the two entities will provide further impetus to
the Government’s vision of “Housing for All"," I%PC)%,12
HDFC said in the exchange filing. Post the How RBI is reducing
combination, HDFC Bank’s customers will be surplus liquidity in the
banking system
o!ered mortgages as a core product in a seamless
manner. HDFC Bank will also leverage the long W0'(%62C' 0

tenor mortgage relationship to o!er varied credit

and deposit products enabled through better
insights throughout the customer life-cycle. '(%)*+,-./%0$

*A combination of HDFC Ltd and HDFC Bank is

entirely complementary to, and enhances the
value proposition of HDFC Bank.

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hdfc: HDFC merger to create a global banking behemoth: 12 reasons for the merger, BFSI News, ET BFSI 07/06/22, 11:05 AM

*HDFC Bank is a private sector bank and has a

large base of over 6.8 Crore customers. The bank I%PC)%,12
platform will provide a well diversified low cost India Inc ECB fundraise
drops to a trickle as global
funding base for growing the long tenor loan book
rates go up
acquired by HDFC Bank.

*HDFC Bank would benefit from a larger balance

sheet and networth which would allow
I%PC)%,12
underwriting of larger ticket loans and also enable
Jack Ma's ANEXT set to
a greater flow of credit into the Indian economy. take on three new digital
banks in Singapore

*HDFC Ltd has invested capital and developed

skills and has set up 445 o"ces across the
country. These o"ces can be used to sell the entire
product suite of both HDFC Limited and HDFC
I%PC)%,12
Bank. How RBI is reducing
surplus liquidity in the
banking system

I%PC)%,12
TVS Credit CEO says open
to more partnerships,
possibly be a lending-
backed marketplace

*The loan book of HDFC Ltd is diversified having

cumulatively financed over 90 lakh dwelling units.
With HDFC Ltd's leadership in the home loan HJ%PC)%,12
GDP may drop, RBI should
arena, developed over the past 45 years, HDFC
remain accomodative:
Bank would be able to provide to customers Bloomberg

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hdfc: HDFC merger to create a global banking behemoth: 12 reasons for the merger, BFSI News, ET BFSI 07/06/22, 11:05 AM

flexible mortgage o!erings in a cost-e!ective and

e"cient manner.
!1-%.2%('*-
*HDFC Bank has access to funds at lower costs due
to its high level of current and savings accounts !"#$%&'()"*+,(-".'
/"0*1(2*#1*34()"+%&.5+4
deposits (CASA). With the amalgamation of HDFC
67*85#(9*,
Limited with HDFC Bank, HDFC Bank will be able
to o!er more competitive housing products.

*HDFC Ltd's rural housing network and a!ordable

housing lending is likely to qualify for HDFC Bank
as priority sector lending and will also enable a
higher flow of credit into priority sector lending,
including agriculture.
Tune in to watch our full
interview with Vikas Bansal,
*The deal would enable HDFC Bank to build its Director, Amazon Pay.
housing loan portfolio and enhance its existing
customer base; It is based on leveraging the
significant complementarities that exist amongst
the Parties. The transaction would create ED%B,N)%,12

meaningful value for various stakeholders India’s lending segment

untapped: CASHe founder
including respective shareholders, customers,
employees, as the combined business would
benefit from increased scale, comprehensive
product o!ering, balance sheet resiliency and the
ability to drive synergies across revenue JG%B,N)%,12
Automation makes
opportunities, operating e"ciencies and
definite di!erence in
underwriting e"ciencies, amonqst others. taking away menial jobs,
say leaders

*The deal will result in reducing HDFC Bank's

proportion of exposure to unsecured loans;

*HDFC Ltd has built technological capabilities to

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hdfc: HDFC merger to create a global banking behemoth: 12 reasons for the merger, BFSI News, ET BFSI 07/06/22, 11:05 AM

evaluate the credit worthiness of customers using

analytical models, and has developed unique skills
in financing various customer segments. The XH%B,N)%,12
The word 'banking' has
models have been tested and refined over the
improved, but banking has
years at scale and HDFC Bank will benefit from not: Zaggle founder Raj N
such expertise in underwritinq and financinq of
mortgage o!erings. W0'(%62C' 0

*HDFC Bank can leverage on the loan

management system, comprising rule engines, IT
tools and rules, agents connected through a
central system; The deal is expected to result in
bolstering the capital base and bringing in
resiliency in the balance sheet of HDFC Bank;

*HDFC Investments Ltd and HDFC Holdings Ltd

are Systemically Important Non-Deposit
Accepting Non-Banking Finance Companies and
are also wholly owned subsidiaries of HDFC Ltd.
The proposed transaction shall result in
simplified corporate structure.

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hdfc: HDFC merger to create a global banking behemoth: 12 reasons for the merger, BFSI News, ET BFSI 07/06/22, 11:05 AM

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