With Rs 14.7-lakh-cr MCap, HDFC-HDFC Bank united to outgrow top 4 private, 13 PSU lenders

Currently, July 1 is the tentative date for the completion of the merger of HDFC Ltd with HDFC Bank. The tentative record date is July 13. Both entities are moving closer to completing all the formalities

Once the merger is done, the accumulated market capitalisation of HDFC Ltd and HDFC Bank Ltd will surpass that of the top four Indian private lenders combined – ICICI Bank Ltd, Kotak Mahindra Bank Ltd, Axis Bank Ltd, and Indusind Bank Ltd – and will also exceed that of all government-owned banks put together.

Today is the last day when HDFC Ltd will be trading on the bourses. The mortgage lender has a market value of Rs 5.19 trillion, while that of HDFC Bank Ltd stands at Rs 9.47 trillion. After the merger, the combined entity is likely to flaunt a Rs 14.7-trillion or $177.10-billion tag.

While all 13 PSU banks have a combined market valuation of Rs 9.77 trillion, the top four private banks – ICICI Bank, Kotak Mahindra Bank, Axis Bank, and IndusInd Bank – have an accumulated worth of Rs 14.3 trillion.

Read: HDFC-HDFC Bank merger: How did the story unfold over time?

The merged entity will also find a seat among the world’s top 100 league as the 61st most valued firm. Apple now leads the group with a market cap of $3 trillion, followed by Microsoft at $2.50 trillion and Saudi Arabian Oil Co, also known as Saudi Aramco, at $2.08 trillion.

Among lenders, it will become the fourth most valuable in the world. JP Morgan Chase is now the world’s most valued lender with a market cap of $405 billion, followed by Bank of America ($223 billion) and Industrial and Commercial Bank of China ($223 billion).

The combined HDFC entity will also outrun global banking giants such as HSBC Holdings, Bank of China, Morgan Stanley and Royal Bank of Canada.

Also Read: HDFC-HDFC Bank merger to give rise to a banking giant bigger than Morgan Stanley

July 1 is the tentative date for the completion of the merger of HDFC Ltd with HDFC Bank. The tentative record date is July 13. Both the entities are moving closer to completing all the formalities.

Once the merger is done, HDFC Ltd shareholders will hold 41 percent in HDFC Bank. The bank will maintain a swap ratio of 25:42, so for every 25 shares of HDFC Ltd, 42 shares of HDFC Bank will be given.