HDFC Bank will become the world’s fifth largest lender, complete process in 18 months

The merger between HDFC Ltd and HDFC Bank was announced on Monday. The merger was approved about eight years ago. According to a report, this process will be completed in 18 months and after this HDFC Bank will become the fifth largest lender in the world.

On Monday, the two giants of the country, HDFC Bank and HDFC Limited, were announced to be one. It is one of the biggest deals in the Indian financial sector. information about this merger was provided to the stock market. According to the report, some regulatory approvals are yet to be received in this matter, after which the deal will be completed in the next 18 months and after that a new company will be formed. With this, HDFC Bank will build a larger housing loan portfolio as well as increase its customer base. After this deal, HDFC Ltd will have 41 per cent stake in the bank. After the merger, the balance sheet of the new company will be Rs 17.87 lakh crore.

Second in terms of market cap

After the merger, the public will have 100% stake in HDFC Bank. The total assets of HDFC Ltd are Rs 6.23 lakh crore while that of HDFC Bank is Rs 19.38 lakh crore. HDFC Bank has 68 million customers. With the merger of the two companies, their market capitalization has become the highest after Reliance. The market capitalization of HDFC Limited is Rs 4.8 Lakh Crore and that of HDFC Bank is Rs 9.18 Lakh Crore. In this way, the market capitalization of both of them stood at Rs 13.98 lakh crore, while the market capitalization of TCS, which is currently second only to Reliance, is Rs 13.79 lakh crore.

There will be no effect on the employees

After the merger, 42 shares of HDFC Bank will be given for every 25 shares of HDFC Ltd. According to experts, the number of customers of HDFC Bank will increase after the merger. Because, about 70 percent of HDFC Limited’s customers are those who do not have an account with HDFC Bank. On the other hand, if 80 percent of HDFC Bank customers take a loan from another bank, then the bank will also get a benefit from it. HDFC Chairman Deepak Parekh said that after this merger, the balance sheet of the new company will increase as well as the number of home loan borrowers will also increase. He said that the stake in HDFC Life can be increased to 50 per cent, which is 48 per cent at present. No employee will be affected by this merger. “The merger is a coming together of equals,” Parekh said

Biggest merger in corporate history

After the merger of HDFC with HDFC Bank, its balance sheet will be double that of ICICI Bank. Rating agency S&P said in its report that this is the biggest merger in India’s corporate history. After this, HDFC Bank’s loan will increase by 42 percent to Rs 18 lakh crore and this will increase the bank’s market share from 11 to 15 percent.However, even after the merger, HDFC Bank will remain the second largest bank. SBI’s name is on the first number and ICICI Bank will be on the third number. Its merger will take at least 12 to 18 months for which IRDAI, Reserve Bank and other regulatory approvals will have to be taken. With this merger, the bank will be able to raise money at a better rate. Along with this, the digital and distribution network will also increase.

Got approval eight years ago

About 8 years ago, a notification from the Reserve Bank led to the merger of HDFC. At that time, the Reserve Bank had approved that banks could issue long-term bonds for affordable housing. The executives of both the companies had ruled out the possibility of any such merger. In July 2014, the Reserve Bank had said that there is no need for the bank to maintain the cash reserve ratio. Both the companies are doing separate business since 1994. HDFC Bank started operations in 1994 and from then till 2020, its MD was the CEO Aditya Puri. He holds the record of being MD & CEO for the longest time in Indian banking history. HDFC Bank used to give all the files of the home loan to HDFC Limited and get commission on it.

Following the announcement by HDFC chairman Deepak Parekh, HDFC Bank shares shot up by 9.97 per cent to Rs 1,656.45 on the BSE Monday. HDFC Ltd shares rose by 9.30 per cent to close at 2,678.90.

The post Merger: HDFC Bank will become the world’s fifth largest lender appeared first on newsmantra.in l Latest news on Politics, World, Bollywood, Sports, Delhi, Jammu & Kashmir, Trending news | News Mantra.

Market sentiment also took a hit as new coronavirus infections continued to rise in India with cases now near 2.9 lakh.

“The statement from the US Fed that recovery from pandemic would take longer than expected triggered a weak start which worsened with a deep cut in the European indices in the latter half,” said Ajit Mishra, VP – Research, Religare Broking Ltd.

Indian markets also extended their losses after Supreme Court asked telecom operators to file replies on a roadmap for payment of government dues.

The Nifty banking index fell 2.72% following the hearing as many banks have large exposure to the telecom sector.

HDFC Bank, ICICI Bank and Kotak Mahindra Bank were the top drags, falling between 2.3% and 3.3%. The country’s top lender State Bank of India ended down 5.62%.

Shares of telecom operators Bharti Airtel fell 2.7%, while Vodafone Idea tumbled 14.75%
US Markets

Wall Street plummeted on Thursday as investors reacted to renewed fears of a pandemic resurgence and digested dour economic forecasts from the U.S. Federal Reserve.

The Dow Jones Industrial Average fell 1,861.82 points, or 6.9%, to 25,128.17, the S&P 500 lost 188.04 points, or 5.89%, to 3,002.1 and the Nasdaq Composite dropped 527.62 points, or 5.27%, to 9,492.73.
Asian Markets

Asian equities are set to fall sharply on Friday after Wall Street stocks and oil tumbled over growing concerns that a resurgence of coronavirus infections could stunt the pace of reopening economies.

Australian S&P/ASX 200 futures were down 3.04% at 20:59 GMT, while Japan’s Nikkei 225 index closed down 2.82% at 22,472.91 on Thursday. Hong Kong’s Hang Seng index futures were down 2.06%.

The post Sensex today suffered its biggest loss appeared first on newsmantra.in l Latest news on Politics, World, Bollywood, Sports, Delhi, Jammu & Kashmir, Trending news | News Mantra.

After touching a low of 34,010.86, the 30-share index was trading 214.42 points, or 0.63 per cent, lower at 34,032.63.

Similarly, NSE Nifty fell 57.90 points, or 0.57 per cent, to 10,058.25.

Shares of Vodafone Idea fell 10% on the stock exchanges, hitting the lower circuit, ahead of a Supreme Court hearing on the adjusted gross revenue (AGR) case. The hearing may include the government’s application that telecom firms be allowed to spread the payment of their dues over 20 years or less.

Sun Pharma was the top laggard in the Sensex pack, shedding around 2 per cent, followed by HDFC Bank, Titan, NTPC, Kotak Bank, TCS and Infosys.

On the other hand, IndusInd Bank, Hero MotoCorp, Nestle India and Axis Bank were among the gainers.

In the previous session, the BSE barometer settled 290.36 points, or 0.86 per cent, higher at 34,247.05, and the broader Nifty climbed 69.50 points, or 0.69 per cent, to 10,116.15.

On a net basis, foreign institutional investors sold equities worth Rs 919.26 crore in the capital market on Wednesday, provisional exchange data showed.

According to analysts, market started on a negative note amid foreign fund outflow and weak cues from global markets after US Federal Reserve policy outcome.

The US central bank on Wednesday cut its benchmark short-term rate to near zero, and said nearly all its policymakers foresee no rate hike through 2022.

It also said that it will keep buying bonds to maintain low borrowing rates and support a US economy mired in a deep recession with high unemployment.

Stock exchanges on Wall Street ended on a mixed note in overnight trade.

Bourses in Hong Kong, Tokyo and Seoul were in the red, while those in Shanghai were trading with gains.

International oil benchmark Brent crude futures fell 2.66 per cent to USD 40.62 per barrel.

The post Sensex falls over 200 pts appeared first on newsmantra.in l Latest news on Politics, World, Bollywood, Sports, Delhi, Jammu & Kashmir, Trending news | News Mantra.

The ICICI has a $100 million exposure to Singapore-based oil trading company Hin Leon Trading Pte, which has filed for bankruptcy protection in the Singapore courts, a report by S&P-owned Platts agency said. Shares of the bank fell 5.9% to ₹339.95 on the BSE.

State-owned Bharat Heavy Electricals (BHEL) received an order to manufacture and supply heavy material handling equipment for its thermal power plant at Yadadri in Telangana. The stock was down 2.3% at ₹895 on the BSE.

Aurobindo Pharma the pharmaceutical company jumped 10% to ₹594.60 on the BSE after it said the US Food and Drug Administration (USFDA) has classified the inspection conducted at Unit IV, an injectable manufacturing formulation facility, as Voluntary Action Indicated (VAI). The inspection was held during 4-13 November, 2019

The Indian rupee opened at 76.74 against the US dollar, compared with Monday’s close of 76.54.
Top Nifty gainers, laggards Dr Reddy’s Laboratories, Cipla, Sun Pharmaceutical, Britannia and Nestle were the top gainers on the Nifty 50 index, while IndusInd Bank, Hindalco, Axis Bank, ICICI Bank and Bajaj Finance fell the most.

US stocks tumble as oil prices crash Key Wall Street indices fell after US crude futures turned negative for the first time in history, underscoring the chaos the coronavirus pandemic has unleashed on the global economy. A devastating supply glut of oil has forced traders to pay others to take the crude off their hands.

A deal announced last week between the Organization of the Petroleum Exporting Countries (OPEC) and independent producers to cut output by about 10 million barrels per day starting in May has failed to boost investor sentiment.

The post Sensex, Nifty big fall appeared first on newsmantra.in l Latest news on Politics, World, Bollywood, Sports, Delhi, Jammu & Kashmir, Trending news | News Mantra.

Oil prices rallied Monday after top producers agreed to slash output and shore up coronavirus-ravaged energy markets, but some analysts were concerned the cuts did not go far enough.

US benchmark West Texas Intermediate was up 7.7% at USD 24.52 a barrel in Asian trade while Brent crude, the international benchmark, put on 5% to USD 33.08 a barrel.

The shares of India’s largest mortgage lender slipped into the red. At 09:53am the shares of HDFC Ltd traded 3% lower at ₹1654 apiece on the BSE while the benchmark Sensex dropped nearly 2%.

China’s central bank has raised its stake in HDFC Ltd to 1.01% from 0.8% earlier.

Zydus Cadila has received tentative approval from the USFDA to market Empagliflozin Tablets, in the strengths of 10 mg and 25 mg. The medication is used together with diet and exercise to improve blood sugar control in adults.

The Hyderabad-based company has received an establishment inspection report from the US health regulator for its Nalgonda-based active pharmaceutical ingredient manufacturing unit. “… we would like to inform you that we have received the EIR from the USFDA, for the above-referred facility, indicating closure of the audit,” it said in a regulatory filing.

The Indian rupee fell 15 paise to 76.43 against the US dollar in opening trade on Monday, tracking weak domestic equities and sharp rise in coronavirus cases in the country.

The post Sensex down 500 points appeared first on newsmantra.in l Latest news on Politics, World, Bollywood, Sports, Delhi, Jammu & Kashmir, Trending news | News Mantra.

Among headline indices, the S&P BSE Sensex was up 570 points, or 1.95 per cent, at 30,440 and the Nifty50 index hovered around 8,920 level, up 175 points, or 2 per cent. Index heavyweight HDFC, up 5 per cent, was the top contributor to the Sensex’s gain. Besides, Bajaj Finance, ICICI Bank, Axis Bank, and ONGC were all up over 4 per cent.

All the Nifty sectoral indices were in the green, led by Nifty Auto index, up 7 per cent. Besides, Nifty Pharma index gained 5 per cent. Among the index’s components, Cipla (up 15%) and Lupin (up 10%) were the top gainers.

The broader market also tracked gains in the main indices. The S&P BSE MidCap and SmallCap indexes were both up over 2.5 per cent each.

Gold-backed exchange traded funds (ETFs) witnessed a net inflow of $23 billion, or 298 tonnes (t), in the January – March 2020 quarter across all regions, suggests the latest data from World Gold Council (WGC).

This is the highest quarterly amount ever in absolute US dollar terms and the largest tonnage additions since 2016.

“During the past year, gold ETFs added 659 tonnes, the highest on a rolling annual basis since the financial crisis, with assets under management (AUM) growing 57 per cent over the same period,” WGC said.

The post Sensex up 500 pts appeared first on newsmantra.in l Latest news on Politics, World, Bollywood, Sports, Delhi, Jammu & Kashmir, Trending news | News Mantra.

Investors were encouraged by reports that the US Senate has passed a $2 trillion coronavirus relief package while a separate report said the Indian government was likely to agree an economic stimulus package of more than Rs 1.5 trillion to fight the downturn caused by the coronavirus outbreak.

Frontline index S&P BSE Sensex was up 1300points, or 5.05 per cent, at 29,900 levels, and the Nifty50 index hovered around 8,620 level, up 301 points, or 3.62 per cent.

Among individual stocks, IndusInd Bank bucked its downtrend to surge 35 per cent intra-day. Besides, ICICI Bank and HDFC (both up 12 per cent) and HDFC Bank (up 8 per cent) were among the top contributors to Sensex’s up move.

All the Nifty sectoral indices were trading in the green, led by Nifty Private Bank index, up over 10 per cent. Nifty Bank index also rose 9 per cent.

In the broader market, the S&P BSE MidCap index was up 3.8 per centand the S&P BSE SmallCap index surged 4.7 per cent.

Shares of IndusInd Bank rallied as much as 30% and was the top gainer on the Nifty 50 index. Bajaj Finserv, Axis Bank, Bajaj Auto and Bajaj Finance were the other top performers. Indian Oil Corporation, GAIL India, HCL Technologies, NTPC and ITC were the biggest laggards.

The US Senate has passed a stimulus package worth $2 trillion to mitigate the economic damage likely to be caused by the coronavirus pandemic.

The post Sensex Surges 1300 pts appeared first on newsmantra.in l Latest news on Politics, World, Bollywood, Sports, Delhi, Jammu & Kashmir, Trending news | News Mantra.

Monday’s trading halt was a second within a period of seven trading sessions, as world markets continued to suffer the worst selloff since the 2008-09 global financial crisis.

The Nifty Bank index – comprising stocks of 12 major lenders in the country including heavyweights SBI, HDFC Bank and ICICI Bank – was down 12.74 per cent.

Asian stock markets sank as a rising tide of national lockdowns threatened to overwhelm policymakers’ frantic efforts to cushion what is likely to be a deep global recession. MSCI’s broadest index of Asia-Pacific shares outside Japan lost 3.8 per cent, with New Zealand’s market shedding a record 10 per cent as the government closed all non-essential businesses. Shanghai blue chips dropped 2.3 per cent, though Japan’s Nikkei rose 0.8 per cent aided perhaps by expectations of more aggressive asset buying by the Bank of Japan.

The post Trading Halted For 45 Minutes appeared first on newsmantra.in l Latest news on Politics, World, Bollywood, Sports, Delhi, Jammu & Kashmir, Trending news | News Mantra.

At around 9:30 am, BSE Sensex was down by 1,785.28 or over 6 per cent at 27,084.23 while Nifty was down almost 600 points or 6.90 per cent at 7,884.65, which is the lowest since December 27, 2016. By 10 am, Sensex was down by almost 1,900 points at 26,977.

All shares on the Sensex pact apart from NTPC and Powergrid were trading in red due to heavy selloff in the stock market. As far as Nifty is concerned, all sectoral indexes are trading in the red.

The fresh fall on Thursday is another alarming day on Dalal Street, reflecting the wider sentiments of global markets, which have suffered deep wounds while tackling the novel coronavirus outbreak.

While governments around the world have tried to boost sentiments, it has hardly helped in boosting investor sentiments as there is too much panic around how much damage the virus can cause and whether it triggers a global recession.

Meanwhile, the spread of coronavirus seems to be intensified in several countries outside China. Italy on Wednesday reported 475 deaths while cases in the US rose by over 1,000. In India, the pandemic has claimed three lives while 170 have been infected.

At present, market analysts are uncertain when the market would bottom out and have told investors to stay calm and avoid panicking as it could lead to further losses.

Some analysts now say that the next 15 days would be crucial for stock markets around the world including India.

The post Sensex crashes over 1,800 points appeared first on newsmantra.in l Latest news on Politics, World, Bollywood, Sports, Delhi, Jammu & Kashmir, Trending news | News Mantra.

Market indices erased earlier gains and trended bearish by Tuesday’s afternoon session, tracking overseas equity markets that traded cautious as coronavirus infected cases continues to rise globally. On Tuesday, markets traded volatile as investors banked up on hopes of liquidity infusion given by apex lender RBI by late Monday (post market hours), although stayed pessimistic over rising cases of virus.

Overseas, trend has been strongly negative amid the heightened fears of COVID-19 cases. Policymakers worldwide have continued to ensure a globally coordinated response to the coronavirus pandemic by closing borders, banning travel and assuring liquidity infusion into the system, in a move to curb economic fallout from the virus. On Monday, market indices recorded the second biggest single-day fall and ended 8% lower. Where Sensex ended 2,713 points lower at 31,390, Nifty closed 756 points lower at 9,199.

Besides the outbreak in China, the Covid-19 infection cases have risen drastically outside China, hurting major economies and disrupting supply chains. There are currently 182,605 confirmed cases and 7,171 deaths from the coronavirus outbreak as of March 17, 2020. Of this, 79,881 have been recovered globally. The number of infected cases in India has increased to 129. The death toll from coronavirus in India has risen to 3 on Tuesday.

The post Sensex ends 810 points lower, Nifty at 8,968 appeared first on newsmantra.in l Latest news on Politics, World, Bollywood, Sports, Delhi, Jammu & Kashmir, Trending news | News Mantra.