HDFC Bank Merger: Merger of HDFC Bank completed from today, big impact on FD and loan takers?
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The merger of HDFC Bank (HDFC Bank) and HDFC Development Finance Corporation (Housing Development Finance Corporation) has come into effect from today i.e. July 1, 2023. According to Bloomberg, with this merger HDFC has become the fourth largest bank. World in terms of market cap. Along with the merger, the question is also arising in the minds of the bank’s customers that if they have taken a home or any loan or FD from HDFC, 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 & Co.
What will be 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 making FDs in the housing finance company. Customers can either withdraw or renew their FD. In renewal, it is obvious that the rate of HDFC Bank will be lower than HDFC Finance. That is, you will get less interest on renewing FD.
However, experts also say that the customer’s money will be more secure on renewal. Under the Deposit Insurance and Credit Guarantee Corporation, deposits of up to Rs 5 lakh are guaranteed by the government. Hence, FDs up to Rs.
What will be the effect on borrowers
, Experts say that if someone has 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 the HDFC Finance home loan rates are subject to change going forward. There is a high possibility that it may come down if the interest on the loan is revised.
After the merger, HDFC will have 120 million 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 crossed SBI’s $62 billion and ICICI Bank’s $79 billion.
(pc rights of employees)
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