It is expected that in order to form the second largest lending institution of the country, Home Financier HDFC and HDFC bank may form one unit. If both will find the conditions favorable and economies of scale prove beneficial to both then they will go for merger. Already at present HDFC bank is one among the top leading banks of the country.
It was reported that if they go for the merger then the excess capital of the HDFC can be efficiently utilized. The decision of the merger is not yet finalized, if both will find the win-win situation then only they will merge. After the Introduction of new norms they find the merger to be suitable. Vice chairman and MD of the HDCF stated that Because of the reduction in CRR and SLR on existing funds, yes, if they were to work out the numbers, probably it may be a little bit better but we will have to do the arithmetic.
Earlier also in 2001, one such merger took place between infra lender ICICI decided to merge with its banking subsidiary, creating the largest private sector bank.