As part of the plan, HDFC Limited’s wholly owned subsidiaries – HDFC Investments Limited and HDFC Holdings Limited are to be amalgamated into HDFC Limited. Thereafter, HDFC Limited is to be amalgamated with HDFC Bank.
“We would like to inform you that HDFC Limited has received approval from PFRDA today i.e. on 8th July, 2022, with regard to change in its position/constitution as planned in accordance with the PFRDA (Point of Presence) Regulations, 2018. Provided that the services of NPS customers linked to HDFC Ltd will not be affected due to the scheme,” HDFC said in a regulatory filing on Friday.
The mortgage lender said the amalgamation plan is subject to various statutory and regulatory approvals, including from the Competition Commission of India (CCI), the National Company Law Tribunal (NCLT) and the concerned shareholders and creditors of the companies involved in the scheme.
Point of Presence (POP) are banks and non-banking financial companies which are registered with Pension Fund Regulatory and Development Authority (PRFDA) for registration and servicing of customers National Pension System (NPS) administered by the Authority.
Registered POPs have authorized branches called POP-Service Providers (POP-SPs) who act as collection points and provide services to customers.
They are involved in customer registration, processing customer contribution, change in personal details, change in investment plan/fund manager, transfer of customer from one model to another, issue printed account statement, process withdrawal/exit request on retirement act like. among others.
Earlier this week HDFC Bank said reserve Bank of India ,reserve Bank of India) has approved the merger proposal with its parent company HDFC Ltd.
In addition, both the entities have received no objections from both the stock exchanges NSE and BSE.
The HDFC-HDFC Bank merger is seen as the biggest transaction in the corporate history of India.
On April 4, India’s largest private lender HDFC Bank had agreed to take on the largest home mortgage lender in a deal worth around USD 40 billion, clearing the way for building financial services.
in country.
The combined asset base of the proposed unit will be around Rs 18 lakh crore. The merger is expected to be completed by the second or third quarter of FY24, subject to regulatory approvals.
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.