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Liabilities of HDFC Ltd shall be transferred to HDFC Bank upon their merger and there’s no must repay such dues on the very first day of the merger, the lender mentioned on Thursday.
The nation’s largest non-public sector financial institution by stability sheet measurement is about to merge its guardian mortgage lender Housing Improvement Finance Company Ltd (HDFC Ltd) with itself.
HDFC Bank mentioned it has not permitted any plans to lift funds to pay in direction of such liabilities of HDFC Ltd.
“As per the proposed composite scheme of amalgamation, the liabilities of HDFC Restricted shall be transferred to the financial institution and shall be serviced and repaid by the financial institution as per the contracted maturity,” HDFC Bank mentioned in a regulatory submitting.
The financial institution is just not required to repay any quantity of legal responsibility of HDFC Ltd on day one of many merger until coincidentally any specific legal responsibility occurs to mature on the identical date.
HDFC Bank has already obtained in-principle approval from the Reserve Bank (RBI) for the merger with HDFC Ltd, amongst different approvals.
The parent-subsidiary merger is seen as the largest transaction in India’s company historical past.
In April this 12 months, HDFC Bank and HDFC Ltd introduced the merger proposal by which the lender will take over the mortgage lender for about USD 40 billion in about 18 months.
The knowledge offered by the lender comes as a clarification in response to a information report, which acknowledged that HDFC Bank is required to lift over ₹2.2 lakh crore so as to repay HDFC Ltd’s legal responsibility when the merger between them involves impact.
HDFC Bank mentioned the information report is factually incorrect and speculative.
The inventory of HDFC Bank traded at ₹1,427.65 apiece on BSE, down 0.38 per cent. PTI KPM BAL
Revealed on
August 04, 2022
