Fair trade regulator Competition Commission of India (CCI) has approved the merger proposal of HDFC Bank and its parent HDFC Ltd. The proposed combination envisages the merger of HDFC Investments and HDFC Holdings with HDFC Ltd in the first step and subsequently, the merger of HDFC Ltd into HDFC Bank.
In a tweet on Friday, CCI said it has approved the "proposed combination involving the amalgamation of HDFC Limited, HDFC Bank, HDFC Investments and HDFC Holdings."
In April, the country's largest housing finance company
HDFC Ltd announced that it will merge with
HDFC Bank. Deals beyond a certain threshold require approval from the regulator, which keeps a tab on unfair business practices in the marketplace.
HDFC Bank on July 18 had reported a nearly 21 percent jump in its April-June quarter net profit at Rs 9,579.11 crore on the back of solid loan growth and a rise in low-cost deposits.
Liabilities of HDFC Ltd will be transferred to HDFC Bank upon their merger and there is no need to pay off such dues on the very first day of the merger, the lender had said on August 4.