“More or less we think we are on the timeline. Maybe a quarter or a few months before (likely to complete the merger process),” HDFC Bank Chief Financial Officer Srinivasan Vaidyanathan told analysts.
“We had earlier indicated September — call it a Q2-Q3 (FY24) time frame. Maybe the way it goes, it could be Q1-Q2,” he said.
On the regulatory regime, he said that the bank is in touch with the regulator. “With regard to RBI relaxations, we remain in talks. There is no specific clarity (at this point). Talks are on on that front,” he said in a post-earnings interaction with analysts on Saturday.
The bank had sought permission from the RBI to comply with regulatory requirements like cash reserve ratio and statutory liquidity ratio in a phased manner.
On the completion of the merger, Vaidyanathan said that the merger may be completed earlier than previously indicated.
In April this year, HDFC Bank announced its plan to take over its promoter Housing Development Finance Corporate in a $40 billion deal. It was initially said that the merger would be completed by the second or third quarter of the next financial year.
Last Friday, the National Company Law Tribunal (NCLT) had given its nod to hold a meeting of shareholders for their approval on the proposed merger.
HDFC, in a regulatory filing on Friday, said a meeting of shareholders would be convened on November 25, 2022, to consider and approve the plan for amalgamation.
Vaidyanathan said the entire process may take six to eight months after getting shareholders’ approval.
The proposal has got in-principle approval from stock exchanges, reserves bank of indiaSecurities and Exchange Board of India, Pension Fund Regulatory and Development Authority and Competition Commission of India.
As a result of the merger, HDFC Bank will be wholly owned by the public shareholders, and the existing shareholders of HDFC will hold 41% of the bank.
For every 25 HDFC shares, holders will get 42 shares of HDFC Bank.