HDFC Merger Update: HDFC-HDFC Bank merger may happen this month,The chairman made a big statement about the RBI.

 HDFC-HDFC Bank Merger News: The merger of HDFC Bank and HDFC will prove to be the biggest transaction in the corporate history of the country. The merger is expected to happen this month. In this regard, HDFC Chairman Deepak Parekh has given a big statement regarding the merger. Parekh said that the Reserve Bank of India (RBI) has encouraged us for this merger. HDFC is currently a Non-Banking Financial Company (NBFC). RBI's rules for regulation of NBFCs are getting stricter day by day.

Many companies have sunk: Chairman Deepak Parekh said in an event in Kolkata that 'We knew that RBI is going to introduce strict guidelines for big NBFCs. In the last 3 to 4 years, about half a dozen big companies have sunk. He said that RBI has encouraged us that it will be good if we merge. Being an NBFC, we were incurring a lot of losses. On the other hand, we were not even getting the benefits that the banks were getting.

Big blow to NBFC sector: Let us tell you that RBI has made the rules very strict for large NBFCs. Banks have made strict regulations for them. The loopholes in the existing rules for NBFCs are being removed. In 2018, the NBFC sector suffered a setback after the sinking of Infrastructure Leasing &amp, Financial Services (IL&FS). Even companies like Reliance Capital, Dewan Housing Finance and SREI have gone bankrupt.

The meeting may be held on November 25.

HDFC is the largest home loan lender in the country. The meeting of all shareholders is to be held on November 25. HDFC has informed the stock exchanges that after considering the proposal of merger in this meeting, it will be approved. HDFC Ltd has already received SEBI approval for transfer of its subsidiary HDFC Property Ventures (HPCL) to HDFC Bank.

This is the new rule: On April 19 this year, RBI had issued detailed guidelines for NBFCs. Their lending and disclosure rules have also been made like that of banks. Under the new rules, an NBFC cannot lend more than 20 per cent of its capital base to any one company. To take the exposure limit to 25 per cent, the board will have to approve an additional 5 per cent loan.

This is the condition: According to the new rules, medium and large sized NBFCs cannot give loans of Rs 5 crore or more to their directors or relatives of directors without the approval of the board. These rules have come into effect from 1 October.