The Reserve Bank of India has allowed HDFC Bank to hold the commercial papers (CPs) that were issued till date by Housing Development Finance Corporation Ltd (HDFC) till their maturity.
The bank cannot roll over or reissue any commercial paper after the effective date of the proposed amalgamation of HDFC with the former, per the Bank’s regulatory filing.
To approach RBI
The bank said it will also approach the RBI with the crystalised amounts of all the liabilities of HDFC as of the effective date.
HDFC Bank’s Board of Directors at their meeting held on April 4, 2022, approved a composite scheme of amalgamation, for the amalgamation of HDFC Investments Ltd and HDFC Holdings Ltd, with and into HDFC Ltd; and thereafter HDFC Ltd into HDFC Bank Limited (“Bank”).
The share exchange ratio is 42 equity shares of face value of ₹1 each of the Bank for every 25 equity shares of face value of ₹2 each of HDFC.
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As per the scheme, the appointed date for the amalgamation of HDFC with and into the bank shall be the affective date of the scheme. The scheme shall become effective on filing of the necessary form with the Registrar of Companies.
The scheme was approved by the shareholders at the National Company Law Tribunal (NCLT) convened meeting of the shareholders of the bank held on November 25, 2022. The NCLT, vide its order dated March 17, 2023, sanctioned the scheme.
The bank said it is in the process of seeking the remaining necessary approvals/permissions and accordingly, the scheme has not yet been made effective.