Why HDFC Bank is taking over its parent

The move was long-awaited yet came as a surprise to the industry, driven in large part by a changing of the guard.

This morning, India’s financial system was jolted with the announcement of a mega merger. HDFC Bank, the largest private bank, would be taking over its parent company, Housing Development Finance Corp. Ltd, the largest housing finance company in the country. 

The duo announced a merger worth $40 billion, or around Rs 3 lakh crore—probably the biggest in Indian history—in which the parent company would cease to exist.

The prospective merger of the two was one of the mostly loosely kept secrets of corporate India; the companies had notably discussed a merger six years earlier as well, and every now and …

Author

Advait Palepu

Advait is a financial journalist and a former writer at The Morning Context. Here, he wrote on India’s banks, the wider financial services industry and the fintech ecosystem. He has previously worked with the Economic and Political Weekly, Business Standard, BloombergQuint and MediaNama, where he covered everything from the Reserve Bank of India to fintech policy.

Writer

advait@mailtmc.com

Mumbai

Author

Furquan Moharkan

Furquan leads the banking coverage at The Morning Context. A business journalist with eight years of experience and a best-selling author, in his earlier stints as a reporter with the Deccan Herald and a columnist at The Banker, he wrote on banking, financial markets and regulatory affairs. He has extensively covered India's debt market crisis, banking crisis and the fall of Yes Bank.

Editor, Banking

furquan@mailtmc.com

Delhi