The Board of Directors of mortgage lender Housing Development Finance Corporation (HDFC) approved the merger of its wholly-owned subsidiaries HDFC Investments Limited and HDFC Holdings Limited with HDFC Bank Limited. According to a filing with the stock exchanges by HDFC Bank, the transformational merger will result in HDFC acquiring a 41% stake in the bank. According to Deepak Parekh, Chairman of HDFC Limited, the merger is one of equal. While HDFC veterans applaud the deal, Parekh emphasises how it will benefit the lender. The HDFC-HDFC Bank merger will reduce the risk of a single product failure and increase the merged entity's asset variety. In contrast to the present assignment approach, the united organisation will be able to offer mortgage products smoothly, according to Deepak Parekh, who spoke at a press conference today. According to Deepak Parekh, regulatory improvements in the last three years have lowered merger hurdles. The merged entity's mortgage offering will be significantly more competitive as a result of the merger. Deepak Parekh told the media that the merger will reduce the risk of a single product failure and increase the merged entity's asset variety. In contrast to the present assignment process, the combined firm will be able to offer mortgage products smoothly. HDFC will continue to operate as is till the merger is completed. All HDFC branches and offices will continue to offer mortgages when the merger goes into effect. After building nine million houses, HDFC Chairman said they needed somewhere to call home, and they found it in their own family business. The emerging institution will emerge as a powerhouse in the Indian banking market, with the parent finally integrating the bank. Following the IL&FS crisis in 2018, the RBI proposed that large NBFCs turn into banks, and this merger is the result of that recommendation. HDFC is the largest mortgage lender in India, and HDFC Bank is the country's largest private bank. Image Source Also read: HDFC Mutual Fund CIO buys Rs 19.36 cr luxury apartment in Mumbai