What is the HDFC Bank-HDFC merger date

HDFC, India’s largest housing finance provider, has merged with HDFC Bank, the country’s largest private sector lender. The merger date will become effective from July 1, 2023. According to the BSE notification, “Please also note that the composite scheme of amalgamation for the amalgamation of: (i) HDFC Investments Limited (“HIL”) and HDFC Holdings Limited (“HHL”), wholly-owned subsidiaries of Housing Development Finance Corporation Limited (“HDFC Limited”), with and into HDFC Limited and (ii) HDFC Limited with and into the Bank, shall become effective on July 1, 2023 (“Effective Date”).” HDFC Bank-HDFC merger: What depositors must know
It is expected that the amalgamated business, which will be named as HDFC Bank, will provide depositors of the home financing company the choice of withdrawing their funds or renewing their deposits with the private sector bank at the interest rate being offered by it. Those that renew their FDs with HDFC Bank are probably going to obtain slightly lower interest rates than they did with HDFC.

When their FDs are renewed, those who selected auto renewal will receive the interest rates offered by HDFC Bank. The fixed deposits are automatically renewed under automatic renewal for a similar term and at the interest rate in effect on the maturity date.

For existing HDFC home loan borrowers
The housing financing corporation HDFC will transfer its home loan portfolio to HDFC Bank, a banking organisation. Home loan benchmarking practices vary between banks and non-banking finance companies (NBFCs).

From October 2019, banks have to link interest rates on all floating-rate retail loans to an external benchmark. The external benchmark can be the RBI repo rate, a 3-month treasury bill, a 6-month treasury bill, or any other market-linked benchmark published by Financial Benchmarks India Pvt Ltd (FBIL).

HDFC Bank said during the announcement in April 2022, “The combined entity will bring together complementary strengths of the two organizations, enabling a rewarding customer relationship. Post the combination, HDFC Bank’s customers will be offered mortgages as a core product in a seamless manner. HDFC Bank will also leverage the long tenor mortgage relationship to offer varied credit and deposit products enabled through better insights through-out the customer life-cycle. This will result in an enhanced value proposition and customer experience for all customers of the combined entity.” Important FAQs to note for home loan borrowers and FD investors of HDFC Ltd

Will my loan be transferred to HDFC Bank post the merger? If yes, will the Customer Login change?
Yes, the Loan Account will be transferred to HDFC Bank post the effective date of merger. Your customer login credentials will not change, and you can continue to access the portal and avail our services.

Due to this merger, will my EMI change for my ongoing loan?
The merger will not have any impact on your EMI; it will remain unchanged.

If the interest rate changes, will it continue to be linked to Retail Prime Lending Rate (RPLR)?
The applicable rate of interest to your account shall now be linked to EBLR (External Benchmark Lending Rate) instead of Retail Prime Lending Rate (RPLR). This is in compliance with the regulatory guidelines on floating rate of interest. On the day of the merger there will be no change in ROI and any changes in future will be based on EBLR.

What is the process pertaining to loan ROI conversion? What are the applicable charges?
There is no change in the process of loan ROI conversion, and you can avail the facility by visiting our HDFC Bank branches for Home Loans (erstwhile HDFC Ltd. Branches). You can also email us on customer.service@hdfc.com.
Or call us on our customer support numbers.
For applicable charges, please refer to our website.

Can I walk into any HDFC Bank branch regarding the servicing of my loan?
As per existing process all servicing of Home Loans is already enabled through our Customer Portal. So, you can continue to access the Customer Portal for any services related to your Home Loans even after the merger.

If you walk-in to any of our HDFC Bank Branch, our staff will help you to connect to the customer portal thru a link or a QR code. However, if your query or request is not resolved via the Customer Service Portal, our branch staff will help you formally log the query or request in the system. You will then receive due intimation about the time for resolution of the query or request. Post which your query or request will be serviced.

What will be my Deposit Account Number and terms of the Fixed Deposit (FD) Booked with HDFC Limited?
Your FD Account Number continues to be the same and will remain the reference point for all your future communications with HDFC Bank
The terms of your FD along with interest rates, interest computation methodology, tenure, maturity instructions and pay-outs will remain same until maturity/renewal of your FD
Your existing Deposit Receipt issued by HDFC Limited will continue to be valid till the maturity of the FD

Will my FD with HDFC Limited be covered by guarantee from DICGC?
Your existing HDFC Limited FD will also be covered by guarantee from DICGC, within an overall maximum limit of Rs 5 lacs (Principle & Interest) post-merger with HDFC Bank.

I am an existing customer of HDFC Bank, will my deposit with HDFC Limited be visible in my current HDFC Bank NetBanking or MobileBanking?
If you are an existing customer of HDFC Bank with NetBanking or MobileBanking access:

Your HDFC Limited deposit booked before June 30 2023 will be visible in HDFC Limited Customer Portal only
HDFC Bank Fixed Deposits will be visible in HDFC Bank NetBanking & MobileBanking
Deposit booked through Customer Portal after June 30, 2023 will be visible in both HDFC Customer Portal & HDFC Bank NetBanking & MobileBanking.