HDFC on Wednesday said the effective date of sthe merger with HDFC Bank will occur only after all approvals are obtained by both the entities.

“The coming into effect of the scheme, that is the effective date, shall occur only after all requisite consent, approvals and permissions are obtained by both, the Corporation and the HDFC Bank,” the company said in a stock exchange filing. The legal advisors to the transaction have indicated that obtaining all the approvals could take 15 to 18 months, it further said, adding: “The scheme and proposed transaction is subject to receipt of requisite approvals from various regulatory and statutory authorities and respective shareholders and creditors, under the applicable law.”

On the effective date, all outstanding liabilities, contingent liabilities, debts, loans (outstanding liabilities) of HDFC will be transferred to HDFC Bank on the same terms and conditions as were applicable to the Corporation, HDFC said. HDFC Bank will meet, discharge and satisfy its duties and obligations pertaining to the transfer and vesting of all outstanding liabilities of the Corporation on the effective date and it shall not be necessary to obtain any further consent of any third party or other person who is a party to any contract or arrangement by virtue of which such liabilities have arisen.

“Till the effective date, the Corporation, as an independent entity, shall carry on business in the ordinary course as an NBFC-HFC,” HDFC said, adding that it will continue to raise and service its borrowings in the ordinary course of business and in accordance with its contractual terms and conditions.

HDFC and HDFC Bank had on April 4 announced the merger. “HDFC Bank will enable seamless delivery of home loans and leverage on the large base of over 68 million customers of HDFC Bank and inter alia improve the pace of credit growth in the economy,” the two had said.

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