The merger of HDFC Bank (HDFC Bank) and HDFC Development Finance Corp. (Housing Development Finance Corp.) has become effective from today i.e. July 1, 2023. According to Bloomberg, with this merger, HDFC has become the fourth largest bank in the world in terms of market cap. Along with the merger, the question also arises in the minds of the bank’s customers that if they have taken a home or any loan from HDFC or have made an FD, then what will be the effect on them.
Bloomberg has claimed in its report that after the merger, the market cap of HDFC has reached $172 billion (about Rs 14 lakh crore). In this way, in terms of market cap, it has reached the fourth position after Bank of America Corp, Industrial and Commercial Bank of China Limited and JP Morgan Chase & Company.
What is the effect on FD holders
If a customer has made a Fixed Deposit in HDFC Bank, then he should check whether his FD has been auto-renewed or not. After the merger, the name of the new company has become HDFC Bank. Before the merger, the bank had given two options to the customers having FD in the housing finance company. The customers would either withdraw their FD money or get it renewed. In renewal, it is obvious that the rate of HDFC Bank will be less than HDFC Finance. That is, on renewing the FD, you will get less interest.
However, the expert also says that the customer’s money will be safer if renewed. Under the Deposit Insurance and Credit Guarantee Corporation, deposits of customers up to Rs 5 lakh are guaranteed by the government. Therefore, FD up to Rs.
What is the impact on the borrowers
? Experts say that if someone had taken a home loan from HDFC Finance, then it will not be affected immediately. However, HDFC Bank home loan rates are linked to an external benchmark under the RBI. This means that there may be a change in HDFC Finance home loan rates going forward. There is a great possibility that it may come down if the interest on the loan is revised.
After the merger, HDFC will have 12 crore customers, which is more than the population of Germany . With this, the total number of branches of the company will reach 8,300, while the number of employees working in this company will reach 1.77 lakh. The market cap of the bank has exceeded $62 billion of SBI and $79 billion of ICICI Bank.
