Harsh Goenka on the impact of the Hdfc merger on the Indian financial sector. Read here

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As India’s most valuable lender, HDFC Bank, agreed on Monday to take over the country’s largest mortgage lender in a $40 billion deal, it was speculated the move would create a titanic financial services as the largest transaction in the nation’s corporate history.

On Monday, tech-savvy RPG Group Chairman Harsh Goenka took to Twitter to share his views on the merger, tweeting that “with this merger, India’s financial scene is set to explode.” Kumar & Ranvir Singh or say USA and Russia. The result is clear domination! With this merger, the Indian financial scene is set to explode with the creation of one of the biggest and best financial institutions in the world! #hdfcmerger.”

It comes at a time when India’s biggest mortgage lender has agreed to buy one of the country’s most valuable banks to create a nearly $190 billion behemoth to take advantage of a boom in home loans and mortgages. consumer spending in the world’s fastest growing major economy.

Housing Development Finance Corp., which provides mortgages to more than half of homebuyers in a country of 1.4 billion people, will own 41% of HDFC Bank Ltd., a bank it helped set up founded 28 years ago. Shares of the two Mumbai-based companies surged on the announcement, among one of the biggest M&A deals this year, according to Bloomberg report.

The transaction, which will create one of India’s largest financial services entities, follows a proposal by the banking regulator for large non-banking financial firms to transform into banks to avoid a repeat of the massive crisis of the nation’s parallel lending in 2018. India’s emergence from the pandemic and an improving labor market helped boost consumer demand and improve lenders’ retail portfolios.

(With agency contributions)

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