HDFC Bank is gearing up for its merger with its parent company, Housing Development Finance Corporation (HDFC).
After the merger, the bank will be among the world’s top 10 most valuable banks.
HDFC Bank To Become One Of World’s Most Valuable Banks
After its merger with the parent company, mortgage lender Housing Development Finance Corporation (HDFC), at the present valuations, HDFC Bank will be among the top 10 most valuable banks in the world and the first Indian bank to join the Top 10 club.
After the merger, the combined entity will be the second largest company in India by market capitalization, beating out the Tata group’s crown jewel, TCS.
On April 4, HDFC and HDFC Bank together had a combined market capitalization of Rs14 lakh crore, at the same time, TCS’s market cap stood at Rs 13.95 lakh crore at 11:15 a.m..
With a market capitalization of nearly $108 billion, HDFC, which is India’s largest private lender just overtook Citigroup, which was ranked 17th with about $100. 5 billion.
DBS Group and UBS, which are both estimated to be worth about $58 billion, are less valuable than HDFC Bank. The largest lender in the nation, State Bank of India, is ranked number 32 in terms of valuation, ahead of BNP Paribas ($55 billion). HDFC Bank and HDFC have a combined market valuation of $52 billion, or roughly $160 billion.
JP Morgan, BNP Paribas Named Most Systemically Significant Bank For 2021
JP Morgan was named the most systemically significant bank for 2021 by the Financial Stability Board, an international organisation that offers recommendations on financial regulation. JP Morgan was followed by BNP Paribas, Citigroup, and HSBC.
The board releases a ranking of the top 30 banks globally with systemic importance. While there are no Indian banks on the 2021 list, there are four Chinese institutions. China has five banks in the top ten, which is more than any other nation.
In the meantime, HDFC Bank declared that it has not heard any negative feedback regarding its proposed merger with parent company Housing Development Finance Corporation (HDFC) Ltd. from the stock exchanges.
When HDFC’s board approved the combination of HDFC Investments Ltd. and HDFC Holdings Ltd. with HDFC Bank, the merger was made public in April of this year.