Finer details regarding who will lead the businesses post the merger of HDFC Limited and HDFC Bank are being worked out presently. Sources aware of the development indicate that HDFC Limited’s long-term veteran, V Srinivasa Rangan may take charge of the mortgages at the bank after the mega-merger. Rangan is an executive director at HDFC Limited’s board and has been associated with the mortgager since 1986. It is also gathered that Keki Mistry, vice chairman and CEO of HDFC Limited may be inducted into the board of HDFC Bank post the merger. At present, Renu Sud Karnad, aged 70, who is the managing director at HDFC Limited holds a board position in HDFC Bank in the capacity of non-executive director. She is expected to remain a member of the board of the merged entity, though in a capacity of independent director.
Email sent to HDFC Limited seeking confirmation regarding the above remained unanswered till press time.
Mortgages business
HDFC Limited is the market leader in the housing finance segment, with a loan book of ₹5.9-lakh crore. Upon the merger with HDFC Bank, mortgage business is expected to account for 40 per cent of the bank’s loan assets.
Sources say Rangan may report directly to the board and would continue to operate the home loans business with a freehand. “The objective is to ensure that nothing changes for the mortgages business, even after the merger and hence it was thought that if continuity should be maintained, a well-seasoned old-timer with HDFC Limited should handle the business,” said a person aware of the matter.
HDFC Limited and HDFC Bank announced the mega merger on April 4 last year. The bank has filed a petition for National Company Law Tribunal (NCLT) approval on December 8, 2022. Most of the approvals required for the merger including Reserve Bank of India’s (subject to certain conditions) are in and the merger is expected to a few months ahead of its earlier December FY24 quarter deadline.
