HDFC's Parekh expects regulatory response to merger to be fair, judicious

 Says India can double home loans in 5 years to $600 billion

Deepak Parekh, chairman of HDFC Ltd, the largest mortgage financier of the country said he expects the regulator’s view on the proposed merger with HDFC Bank to be fair and judicious while asking the stakeholders to be patient. In his address to the shareholders in the annual report, the HDFC patriarch said after 45 glorious years of providing homes to millions of customers, the time is right for HDFC to find a new home.

In April, the HDFC and HDFC Bank announced a plan for an all-stock deal merger, for which all the regulatory approvals are expected in 15-18 months. HDFC Bank has requested the Reserve Bank of India for more time to meet several regulatory requirements like cash reserve ratio, statutory liquidity ratio and priority sector lending targets.

“At this juncture, we are awaiting regulatory guidance on the path forward. We remain respectful of all our regulators and are confident that the outcome will be judicious and fair at a systemic level,” Parekh said in the note to the shareholders of HDFC. “My only ask of our stakeholders is for your patience as we navigate through the complexities of this transaction. More than ever before, we need your trust and support,” he said….Read More