HDFC-HDFC Bank Merger: How Will It Impact the Depositors?
HDFC-HDFC Bank Merger
The merger of HDFC (Housing Development Finance Corporation) and HDFC Bank (Housing Development Finance Corporation Bank) has officially taken effect as of July 1.
This merger was announced on July 4, 2022, after receiving approval from the respective boards and shareholders of both entities.
In a letter to shareholders on June 30, HDFC Chairman Deepak Parekh stated that the merger would provide HDFC Bank with cross-selling opportunities and further strengthen its core competencies in the home loan business.
Essentially, this means that HDFC home loan customers will now have access to the facilities and services offered by the new merged entity.
Following the merger, HDFC Bank’s total deposits will amount to Rs 18.84 lakh crore. This consolidation is expected to enhance the combined entity’s position in the market and create synergies by leveraging the strengths of both organizations.
After the merger between HDFC Ltd. and HDFC Bank, there will be no change in the rate or terms of your Fixed Deposit (FD) with HDFC Ltd.
Your FD account number will remain the same, and all the original terms and conditions will continue to apply.
This means that the interest rate, method of compounding interest, tenure, maturity, and repayment terms of your FD will remain unchanged until its maturity or renewal.
Additionally, the existing receipt provided to you by HDFC Ltd. for your FD will remain valid until the maturity of the deposit.
Therefore, there is no need to worry about any alterations in the terms of your FD as a result of the merger. Your deposit will continue to be governed by the original agreement you entered into with HDFC Ltd.
Following the merger of HDFC Ltd. and HDFC Bank, it’s important to note that your existing FD with HDFC Ltd. will not be reflected in your HDFC Bank net banking or mobile banking services.
The deposits you made with HDFC Ltd. before June 30, 2023, will only be visible on HDFC’s customer portal. These deposits will not be accessible or visible through your HDFC Bank net banking or mobile banking.
However, it’s worth mentioning that any new deposits you make through the HDFC Customer Portal after June 30, 2023, will be reflected in both your HDFC Customer Portal and HDFC Bank net banking or mobile banking.
So, while your existing FD with HDFC Ltd. will remain separate from your HDFC Bank accounts, any new deposits you make after the merger will be visible and accessible through both platforms.
It’s recommended to consult with HDFC or HDFC Bank for specific details regarding the integration of services and any changes to the visibility of your accounts through different platforms.
After the merger between HDFC Ltd. and HDFC Bank, you do not need to open an account with HDFC Bank in order to access or break your FD with HDFC.
Your HDFC deposits will continue to be managed by HDFC, and you can follow the existing procedures and channels provided by HDFC to access your FD or initiate any changes.
Regarding the interest received from your HDFC FD, it will continue to be credited to the savings account of the non-HDFC bank that you have previously linked.
There will be no change in the process of interest crediting, and it will proceed as it did before the merger.
It’s important to note that specific details and procedures related to your individual FD and account arrangements should be verified with HDFC or HDFC Bank directly, as they may have unique policies or updates following the merger.
Following the merger between HDFC Ltd. and HDFC Bank, the procedure for the renewal of your FD will be subject to HDFC Bank’s terms and conditions.
If your FD’s renewal date falls after the merger, which is after July 1, 2023, the rates and terms applicable at HDFC Bank during the renewal period will come into effect.
For instance, let’s say your FD with HDFC is set to mature on July 25, and you decide to renew it. In such a case, the prevailing interest rate offered by HDFC Bank at the time of renewal will be applicable to your renewed FD.
It’s important to note that specific details and procedures regarding the renewal of your FD, including the applicable rates and terms, should be confirmed with HDFC Bank directly, as they may have specific policies and updates following the merger.
The procedure for premature withdrawal of deposits from HDFC post-merger will be in accordance with HDFC’s terms and conditions.
To initiate a premature withdrawal, you can follow the existing procedures provided by HDFC, which include options such as visiting HDFC branches, contacting HDFC agents, or utilizing the customer portal.
It’s important to note that specific details regarding the premature withdrawal process, any associated penalties or fees, and the documentation required should be confirmed with HDFC directly.
They will be able to provide you with accurate and up-to-date information on how to proceed with the premature withdrawal of your deposit.
