---
title: "HDFC Bank → HDFC Ltd"
url: "https://mahouse.world/ma-deals/hdfc-bank-buy-hdfc-ltd-2022"
type: "M&A deal"
year: "2022"
---

# HDFC Bank → HDFC Ltd

India's largest M&A deal when it was announced: a $40bn all-stock merger in which HDFC Ltd, the country's biggest housing finance company, folded itself into HDFC Bank, of which it was the parent, leaving a lender whose loans outran its deposits for the next year and a half.

India's largest corporate transaction, merging the parent mortgage lender into its listed banking subsidiary.

- **Acquirer:** HDFC Bank (India)
- **Target:** HDFC Ltd (India)
- **Value:** $40B
- **Announced:** April 2022
- **Completed:** July 2023
- **Sector:** Banking
- **Deal type:** merger

## Why it mattered

HDFC Ltd had built India's leading mortgage business over 45 years; HDFC Bank, the largest private-sector bank, had more than 68 million customers and 6,342 branches. The logic was funding: the merger joined a trusted home-loan brand to an institution with a lower cost of funds. The boards argued that converging rules for banks and non-bank lenders, lower statutory liquidity requirements and a market in priority-sector lending certificates had made it possible, and HDFC's chairman, Deepak Parekh, called it "a merger of equals".

The terms, announced on 4 April 2022, gave HDFC shareholders 42 HDFC Bank shares for every 25 of theirs and cancelled HDFC's own stake in the bank, so that the bank would be wholly owned by public shareholders, 41% of them former HDFC holders. The scheme needed the Reserve Bank of India, the securities, competition, housing, insurance and pension regulators and the company law tribunal. To meet regulatory requirements the group agreed in June 2023 to sell its stake in the education lender HDFC Credila to BPEA EQT and ChrysCapital, a sale completed in March 2024 for ₹9,553 crore ($1.15bn). The merger took effect on 1 July 2023, within the 15 to 18 months first indicated.

## What it left behind

HDFC Ltd brought a large pool of loans and far fewer deposits, and the bank's loan-to-deposit ratio rose from about 87% before the merger to about 110%. HDFC Bank spent the following two years repairing it: it grew lending more slowly than the banking system in 2024-25, securitised ₹57,000 crore of loans that year and pushed for deposits, bringing the ratio below 100% at the end of 2024 and to 97% by March 2025. The merger also turned a distributor of insurance and mutual funds into a group that owns HDFC Life, HDFC ERGO and HDFC Asset Management, with no identified promoter. In August 2026 Sashidhar Jagdishan, the chief executive who took it through the merger, said he would not seek reappointment and would retire on 26 October 2026. When a non-bank lender merges into a deposit-funded bank, the loans arrive on the first day and the deposits to carry them take years to gather, and growth waits in between.

Source: https://www.hdfc.bank.in/press-release/2022/q2/hdfc-limited-and-hdfc-bank-limited-announce-a-transformational-merger