The housing development finance corporation, or hdfc limited, was among the first financial institutions, to receive in principal, approval from the reserve bank of India (RBI) to set up a bank in the private sector , now the merger of hdfc and hdfc bank is happening, it is mainly for geographic expansion, hdfc bank has a strong presence in urban and semi urban areas, whereas, hdfc has a strong presence in both urban and rural markets

The advantages of hdfc and hdfc bank is expanded product portfolio, the merger of hdfc bank and hdfc is being described as the merger of both equals, the customers of both will be the biggest beneficiary, for instance, the mortgage buissness will have access to low cost bank funds

The impact of merger of hdfc bank and hdfc will be surge in market capitalisation of hdfc bank around 54%, in the nifty index, the relative weight of merge entity would be around15% , each hdfc shareholder having 25 shares of hdfc will get 42 shares of hdfc bank, in india it is the biggest merger, after merger it will be 18 lakh crore company