HDFC merger best case for both entities: Parekh

MUMBAI: HDFC chairman Deepak Parekh has said that the mortgage lender has applied to multiple regulators including CCI, Sebi and the RBI over its proposed merger with HDFC Bank. The process is expected to be completed in 12-18 months and a separate shareholder’s meeting will be called for approving the merger, he said.
Responding to a shareholder query that many amalgamations in the past have been negative, Parekh said that the merger with the bank was the best thing that could happen to both the institutions. He said that there was no duplication between what the housing finance company and the bank were doing. He added that HDFC Bank’s board has given an assurance that all HDFC employees would be absorbed by the bank post-merger.
Parekh had earlier said that it would not be possible to give an exact timeline for the merger to be completed. “We are trying our best to see what approvals we get and as and when we get them, it will be mentioned on the bank’s website,” said Parekh.
He added there would be no duplication of operations. “The bank will require our premises and we will continue to do mortgages from our premises,” Parekh said.
On the economy, Parekh said that India’s growth was powered by domestic consumption and the government has committed to increase capital expenditure. “Capacity utilisation levels are now at 74.5%, which is near the point where fresh investments start,” said Parekh. According to him, the rise in interest rates would not hit demand for housing.