The merger of HDFC (Housing Development Finance Corporation) and HDFC Bank took place on July 1st, 2023, as an all-stock deal. After the merger, all the subsidiaries and associates of HDFC became a Part of HDFC Bank.
The rationale behind the Merger was to bring together significant complementarities that exist between both entities and create meaningful value for various shareholders. Following the Merger, HDFC Ltd, ceased to exist as a separate entity, and HDFC Life Insurance, HDFC Asset Management, and HDFC Ergo General Insurance became subsidiaries of HDFC Bank.
Stake in Subsidiaries & Shareholding Pattern
HDFC Bank holds a 94.63 percent stake in HDFC Securities, followed by a 94.54 percentage stake in HBD Financial Services, 52.48 percent stake in HDFC AMC, 50.48 percent stake in HDFC ERGO General Insurance, and 50.32 percent stake in HDFC Life Insurance.
There is no promoter stake in HDFC Bank; Foreign Institutional investor (FII) owns 42.59 percent, Domestic Institutional investor (DII) owns 29.92 percent, Public owns 10.93 percent and Other owns 16.57 percent.  Â
HDFC Bank After Merger
HDFC Bank merged with the Housing Development Finance Corporation (HDFC) in July 2023. This merger had a big impact on the bank’s performance and future plans. After the merger, HDFC Bank got a large number of loans, but it struggled to grow its deposits. Because of this, the bank’s loan-to-deposit ratio (LDR) became quite high at 110 percent, which means it was giving out more loans compared to the money it had from customer deposits.
In its latest business Update for Q4FY25, HDFC Bank reported a 14.1 percent year-on-year (YoY) growth in deposits, reaching Rs. 27.15 trillion. In contrast, gross advances grew at a slower pace, rising 5.4 percent YoY to Rs. 26.44 trillion, indicating the bank’s focus on strengthening its deposit base post-merger.
After the merger with HDFC Ltd, HDFC Bank focused on growing deposits to fix its high loan-to-deposit ratio. It maintained strong profits and managed a slight rise in bad loans. The RBI continues to recognize it as a key player in the banking system, showing its strong position.
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FInancial Highlights
The company reported a 9.01 percent YoY increase in revenue from Rs. 78,008 Crore in Q3FY24 to Rs. 85,040 Crore in Q3FY25. On a QoQ basis, the company reported an increase of 2.45Â percent in revenue from Rs. 83,002 Crore in the previous quarter.
Their Net profit saw an increase of 3.51 percent YoY from Rs. 17,718 Crore to Rs. 18,340 Crore for the same period. On a QoQ basis, the company reported a decrease of 1.54 percent in Net profit from Rs. 18,627 Crore in the previous quarter.
About the Company
HDFC Bank is one of India’s largest and most prominent private sector banks, established in 1994 and headquartered in Mumbai, Maharashtra. Known for its strong focus on technology, customer service, and financial inclusion, the bank offers a comprehensive range of services, including retail banking, wholesale banking, loans, credit cards, treasury operations, and digital banking solutions. Â
Written By Abhishek Das
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