July 03, 2023 (MLN): Housing Development Finance Corporation (HDFC) Bank’s share price gained 1.84% to INR 1,733.35 while HDFC’s stock price jumped 2.76% to INR 2,899.45 on the first day of trading following the merger of the two lenders.
Housing Development Finance Corporation and HDFC Bank’s merger came into effect from July 01, after receiving approval from shareholders and regulators.
A homegrown Indian company for the first time rank among the world’s most valuable banks following this merger, marking a new challenger to the largest American and Chinese lenders occupying the coveted top spots, as Bloomberg reported.
The tieup of HDFC Bank Ltd. and Housing Development Finance Corp. creates a lender that ranks fourth in equity market capitalization, behind JPMorgan Chase & Co., Industrial and Commercial Bank of China Ltd. and Bank of America Corp., according to data compiled by Bloomberg. It’s valued at about $172 billion.
With this merger, the new HDFC Bank entity have around 120 million customers, that is greater than the population of Germany. It also increases its branch network to over 8,300 and boast of total headcount of more than 177,000 employees.
