Can you think of an Indian bank that could challenge the dominance of top American and Chinese lenders?
Yes, an entirely homegrown Indian Bank According to a Bloomberg report, HDFC will soon join the ranks of some of the world’s most valuable banks.
HDFC Bank Limited is all set to merge with the Housing Development Finance Corporation.
This merger will make the new entity the world’s fourth-largest bank in terms of market capitalization, behind only JP Morgan Chase Industrial and Commercial Bank of China Limited and Bank of America Corporation.
The combined market cap of the new entity after the merger will be about 172 billion dollars, and this merger will become effective in less than 24 hours from now, on July 1st.
The new HDFC Bank entity will have a customer base of 120 million, yes, 12 billion customers, a number that is bigger than the total population of some of the largest European countries like Germany.
Its Branch network will also increase to over 8,300, and the total headcount will be boosted by 177 000 employees. As of June 22nd, HDFC went past HSBC and Citigroup.
The new HDFC entity will leave other large Indian Banks like the SBI with a market cap of 62 billion dollars and ICICI Bank with a market cap of 79 billion dollars far behind.
The module offers it another chance to grow its deposit Base by tapping the existing customers of the mortgage lender.
