RBI allows HDFC Bank to hold CPs issued till date by HDFC till their maturity

the Reserve Bank of India allowed HDFC Bank Hold the Commercial Notes (CPs) issued so far by the Housing Development Finance Corporation Limited (HDFC) until their maturity date.

The bank cannot roll over or reissue any commercial paper after the effective date of HDFC’s proposed merger with the former, according to the bank’s regulatory filing.

to get close to RBI

The bank said it will also transact with the Reserve Bank of India the crystallized amounts of all HDFC liabilities as of the effective date.

The Board of Directors of HDFC Bank, in its meeting held on April 4, 2022, approved a composite scheme of merger, to merge HDFC Investments Ltd and HDFC Holdings Ltd, with HDFC Ltd. and thereafter HDFC Ltd to HDFC Bank Limited (the “Bank”).

The exchange ratio is 42 shares of par value of 1 ruble per bank for every 25 shares of par value of HDFC each.

Also read: The MFs may have to offload ₹4,500 cr worth of shares of HDFC Bank after the merger

According to the scheme, the exact date of the merger of HDFC with and within the bank should be the actual date of the scheme. The scheme shall become effective upon filing the necessary form with the Registrar of Companies.

The scheme was approved by the shareholders at the National Company Law Tribunal (NCLT) meeting of Bank shareholders held on November 25, 2022. The NCLT, by its order dated March 17, 2023, endorsed the scheme.

The bank said it is on its way to obtaining the remaining necessary approvals/permits and, accordingly, the scheme is not yet operational.