The mortgage principal has received approval from National Housing Bank (NHB) for the merger with the subsidiary, a regulatory filing said on Tuesday. NHB has also approved the merger of two wholly owned subsidiaries – HDFC Investments And HDFC Holdings Limited As stated in the housing finance company’s filing with HDFC.

“We would like to inform you that the NHB, vide its letter dated August 8, 2022, has granted its no-objection to the scheme, as per the refinance facilities required. HDFC Ltd from NHB,” HDFC said in the filing.

Already approved country’s largest mortgage lender by asset size Reserve BankSEBI and Stock Exchanges (NSE and BSE) for the proposed merger between HDFC and HDFC Bank.

The merger plan is subject to various statutory and regulatory approvals, including approvals from: competition commission of India, NCLT and the respective shareholders and creditors of both the companies.

The combined asset base of the merged entity will be around Rs 18 lakh crore. The merger is expected to be completed by the second or third quarter of FY24.

Once the deal takes effect, HDFC Bank will be 100 percent owned by public shareholders, and existing shareholders of HDFC will hold 41 percent of the bank.