“HDFC Bank has received a letter dated July 04, 2022 from the Reserve Bank of India, in which RBI has given ‘No Objection’ to the scheme, subject to certain conditions,” the bank said in an exchange filing.
The bank did not specify the conditions set by the regulator.
Earlier, HDFC Bank had said that it has applied to the RBI to fulfill certain regulatory conditions. The bank has requested a phased approach in respect of SLR and CRR, priority sector lending as well as in respect of certain assets and liabilities and in respect of some of its subsidiaries. The bank had sought two-three years for all new loans to meet the SLR and CRR norms.
The bank had requested to hold stake in the insurance venture at the current level or buy additional stake from the market to meet the 50% requirement of the banking regulator. It cannot be immediately verified whether all these requests have been accepted by the regulator.
In May this year, HDFC Bank MD Shashidhar Jagadeesan had said that the merger of HDFC Bank with HDFC Ltd had received in-principle approval from the Prime Minister’s Office, the Ministry of Finance and the Reserve Bank of India, adding that the banking regulator had decided to put the said. The structure of the merged entity is simple, with HDFC Bank being the holding company.
Jagadeesan had said, “The framework we have applied for is the one that the regulator has asked for. “Until tax neutrality is resolved, the regulator is very clear, keep it simple. This is an A+B merger where HDFC Bank will be the holding company. Like you have a large PSU bank and two other private sector banks, where they have allowed banks to have some subsidiaries, we have asked for a similar structure. ,
The lender also said that the merger is subject to statutory and regulatory approvals from the Competition Commission of India, the National Company Law Tribunal and the respective shareholders and creditors of the companies. Last week, the bank said it has received “no adverse comments” from stock exchanges NSE and BSE on the proposed merger.
On April 4, mortgage lender HDFC proposed a merger with HDFC Bank to create financial services worth Rs 13 lakh crore, as a series of regulatory tightening measures have stymied HDFC’s growth in non-banking financial company (NBFC) over the years. benefits were abolished. ,
According to HDFC Bank’s internal estimates, the merger would require an SLR-CRR of around Rs 70,000 crore, along with an increase of Rs 1.75 lakh crore for priority sector lending.
) criteria.