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HDFC-HDFC Bank merger FAQs: What changes for depositors, borrowers, mutual fund investors and shareholders
What happens to fixed deposit customers of HDFC post merger?
HDFC Bank is likely to offer the depositors of HDFC an option to either withdraw their money or renew deposits at the prevailing interest rate at that time.
What are fixed deposit rates being offered by HDFC Bank?
Currently, HDFC Bank offers an interest rate of 3 percent to 7.25 percent on FDs maturing in 7 days to 10 years.
What should loan depositors of HDFC do now?
The existing home loan borrowers should not face any issues as the loans will be shifted to the merged entity and will continue as before.
However, the interest rate on the home loan may likely undergo revision, experts say.
What will happen to the mutual fund portfolios after HDFC-HDFC merger?
Upon completion of the HDFC Bank -HDFC merger, a single entity would remain, and mutual fund managers of diversified equity schemes are expected to make the necessary adjustments to their respective portfolios, bringing down the maximum holding percentage equal to or less than 10 percent As per the norms specified by the capital markets regulator, SEBI, for diversified equity funds, the investment in equity shares or equity-related securities of a single company must not exceed 10 percent of the net assets of the scheme.
This regulation does not apply to sector-specific or thematic funds.
So, what should mutual fund investors do?
Experts say that investors need not be excessively worried about any possible sell-off as the adjustments due to the merger can be easily absorbed by other schemes.
Should shareholders of HDFC worry about the merger?
HDFC stock delisting will happen on July 13 and it would start trading under HDFC Bank.
So, basically HDFC will go off the bourses and shareholders will get their shares converted to HDFC Bank.
