India's HDFC, HDFC Bank merger to be effective July 1

BENGALURU, June 27 (Reuters) - Housing Development Finance Corporation (HDFC) (HDFC.NS) and HDFC Bank (HDBK.NS) are working towards completing the merger of the two financial behemoths by July 1 and may set July 13 as the record date for swapping shares, HDFC said in an exchange filing on Tuesday.

HDFC Chairman Deepak Parekh had said in a CNBC-TV18 report that both the boards will meet on June 30, which would also be the last board meeting of HDFC, and its shares will go off market effective July 13.

However, these dates are tentative and will depend on the completion of certain formalities, HDFC said in the filing.

Once the board of directors of HDFC and HDFC Bank finalizes the effective date of the scheme as well as the record date, it would be intimated to stock exchanges, it added.

HDFC had, in April last year, announced a $40 billion deal to merge with HDFC Bank, the countrys biggest ever, which will create a financial services titan to better tap the rising demand for credit.

As per the deal, shareholders in HDFC will receive 42 shares of the bank for every 25 shares held, giving them ownership of 41% in the lender.

The merger has already been approved by the Reserve Bank of India, National Company Law Tribunal, Pension Fund Regulatory and Development Authority (PFRDA), Securities and Exchange Board of India (SEBI), the Competition Commission of India and Indias stock exchanges.