The National Company Law Tribunal (NCLT) gave its approval for the merger of HDFC and HDFC Bank, which is considered to be the largest merger in corporate history.
With the approval, the largest housing finance company in India, HDFC Ltd, is set to merge with the country's largest private lender, HDFC Bank, to create a banking giant.
HDFC Ltd has already received approval letters from various regulatory bodies, including the Reserve Bank of India, Securities and Exchange Board of India (SEBI), Pension Fund Regulatory and Development Authority (PFRDA), Competition Commission of India (CCI), and India's stock exchanges BSE and NSE.
The National Company Law Tribunal had previously approved the holding of a shareholders' meeting for obtaining approval for the proposed merger.
The merger between HDFC Ltd and HDFC Bank is expected to be concluded in the second or third quarter of FY24.
This merger is considered the largest transaction in India's corporate history. On April 4th last year, HDFC Bank agreed to acquire the largest domestic mortgage lender, in a deal estimated at about $40 billion, creating a financial services giant.
The proposed entity will have a combined asset base of around Rs 18 lakh crore.