HDFC Bank, one of India’s leading banks, has announced that its merged loan book with Housing Development Finance Corporation (HDFC) is valued at approximately 22.45 trillion rupees ($273.77 billion) as of the end of the June quarter. This merger, which took place on July 1, is considered the largest in India’s corporate history, amounting to $40 billion. With this move, HDFC Bank has now entered the prestigious list of the world’s top 10 banks based on market capitalization.
On a proforma basis, HDFC Bank’s loan book witnessed a 13.1% increase in the June quarter compared to the previous year. However, it should be noted that some figures may not be directly comparable to those of the prior year. Additionally, the combined entity’s deposits have reached approximately 20.64 trillion rupees, indicating a 16.2% rise from the previous year.
HDFC Bank also revealed that the merged entity’s liquidity coverage ratio, a measure of cash-like assets, stood at around 120% on a proforma basis during the quarter ended June 30. Furthermore, the bank’s standalone gross advances increased by approximately 15.8% to 16.16 trillion rupees as of June end, while deposits rose by 19.2% to 19.13 trillion rupees during the same period.
This news highlights HDFC Bank’s strong performance and growth, positioning it as a major player in the banking industry. The merger with HDFC has significantly bolstered the bank’s loan book and deposits, enabling it to achieve a dominant position in the market. As per HDFC Bank’s announcement, the merger has propelled the bank into the league of the world’s top 10 banks by market capitalization.
HDFC Bank’s success can be attributed to its consistent efforts in expanding its product offerings, providing excellent customer service, and leveraging strategic partnerships. These factors have contributed to its exceptional financial results and steady growth. With this merger, HDFC Bank is well-positioned to seize new opportunities, enhance its market presence, and further strengthen its position in the global banking landscape.
Overall, HDFC Bank’s merger with HDFC has proven to be a transformative move that has solidified its position as a top-tier bank in both India and the global market. The bank’s impressive loan book and deposit growth, as well as its robust liquidity coverage ratio, demonstrate its ability to adapt to changing market dynamics and deliver value to customers and shareholders alike. HDFC Bank’s future outlook remains positive, and it is expected to continue its upward trajectory in the banking sector.
