New Delhi: HDFC Bank on Monday said the Monetary Authority of Singapore (MAS) has given approval for the merger of HDFC Investments and HDFC Holdings with parent HDFC Ltd.


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As part of a composite scheme of amalgamation, Griha Pte, a wholly-owned subsidiary of HDFC Investments and a foreign step-down subsidiary of HDFC Ltd, received approval for the merger with HDFC Bank. (Also Read: EPFO E-Passbook Service Down Again)


MAS vide its e-mail dated April 24, 2023, to Griha Pte, granted its approval for the acquisition of shares in Griha Pte by HDFC Bank, which would result in the bank acquiring 20 percent or more of the issued share capital of Griha Pte. (Also Read: SBI FD vs Post Office Fixed Deposits: Which One Should You Choose?)


The proposed amalgamation is subject to receipt of final approvals from the Securities and Exchange Board of India (Sebi) in respect of the change in control of certain subsidiaries of HDFC Ltd.


This approval will help pave the way for the merger of HDFC into HDFC Bank, expected to be finalised by the third quarter of this financial year.


Termed the biggest transaction in India's corporate history, HDFC Bank on April 4 last year agreed to take over the biggest domestic mortgage lender in a deal valued at about USD 40 billion, creating a financial services titan.


The proposed entity will have a combined asset base of around Rs 18 lakh crore.


Once the deal is effective, HDFC Bank will be 100 percent owned by public shareholders, and existing shareholders of HDFC will own 41 percent of the bank.


Every HDFC shareholder will get 42 shares of HDFC Bank for every 25 shares they hold.