HDFC Bank and HDFC Merger Creates the World's Fourth-Largest Bank

The historic merger of HDFC Bank Ltd and Housing Development Finance Corp has catapulted HDFC Bank to the top of the Indian banking league, surpassing its counterparts State Bank of India and ICICI Bank, and placing it among the world's top four banks. The new entity has a staggering 120 million customers, surpassing the population of Germany, and boasts an extensive branch network of over 8,300. The merger has created a behemoth in Indian banking, with the new entity employing over 1,77,000 employees.

Key Takeaways:

• The HDFC bank entity has a massive customer base of around 120 million, surpassing the population of Germany.
• The merged entity boasts a vast branch network of over 8,300 branches.
• The new bank will have over 1,77,000 employees, with all HDFC staff below 60 years of age being absorbed.
• HDFC Bank has taken the top place in India, leaving behind State Bank of India and ICICI Bank.
• The new entity will rank fourth in equity market capitalization, only behind JP Morgan Chase & Co., Industrial and Commercial Bank of China Ltd., and Bank of America Corp.
• The merger creates a new challenge for the largest American and Chinese lenders in the Indian market.

Statistics:

• Market capitalization: HDFC Bank (post-merger) Rs. 141,205,550; ICICI Bank Ltd Rs. 65,370,404; State Bank of India Rs. 51,121,077.
• Customer base: HDFC Bank entity has around 120 million customers.
• Branch network: The new entity will have over 8,300 branches.
• Employees: The merged bank will employ over 1,77,000 employees.
• Equity market capitalization: HDFC Bank (fourth largest), JP Morgan Chase & Co. (largest), Industrial and Commercial Bank of China Ltd. (second largest), Bank of America Corp. (third largest).

Sources:

• Hindustan Times, "HDFC Bank and HDFC merger creates the world's fourth-largest bank"