Decision Changes

Strategic Decisions Need for Change Rationale & Benefits

MERGER OF HDFC LTD & HDFC
BANK LIMITED
Under this Scheme
- The subsidiaries/ associates of the
Corporation will become subsidiaries/
associates of HDFC Bank.
- HDFC Bank to be 100% owned by public
shareholders and existing shareholders
of the Corporation will own 41% of
HDFC Bank.
“No anticipated impact on the structure
and employees of the organization”
- Truncated regulatory arbitrage between Improved Value Proposition &
banks and non-banks
Customer Experience:
- A gratifying client connection that will
- In the recent past, RBI has been reforming
combine the complementing qualities of
regulatory architecture of NBFCs to take
the two organizations.
them closer to banks.
- Seamless mortgage offerings would be
- Asset classification norms of NBFCs were made to HDFC Bank customers.
made more rigorous, aligning it close to - The mortgage business would benefit
banks from a larger balance sheet and net
worth, which would allow the
- Co-lending model (CLM) with risk-sharing underwriting of larger ticket loans and
opportunities between banks and non- also enable a greater flow of credit into
banks provides a hint to NBFCs to upgrade the Indian economy
risk management systems to make the
scheme work “Post the merger, HDFC Bank is expected to
be 7nd bank on the global list.”

Impact on Banking Sector

Larger eligible NBFCs may HDFC can be a trend setter for
Prompt large banks to revamp
convert into banks creating banks to turn into larger
Source1 their internal efficiencies
Source 2 competition entities of significance.