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HDFC bank engaged with regulators for compliance of reserve norms post-merger

October 17, 2022

HDFC bank engaged with regulators for compliance of reserve norms post-merger
HDFC Bank is engaged with the regulators for a gradual compliance of reserve norms post its proposed merger with Housing Development Finance Corporation, and it expects to finish it just a few months sooner than anticipated. 

“More or much less we predict we’re on the timeline. Maybe there’s a (chance of finishing the merger course of) 1 / 4 or just a few months early,” HDFC Bank chief monetary officer Srinivasan Vaidyanathan informed analysts. 

“We had previously indicated September call it Q2-Q3 (FY24) kind of a timeframe. Maybe the way it is going, it may be Q1-Q2,” he mentioned. 

On regulatory dispensation, he mentioned that the financial institution is in contact with the regulator. “As regards RBI exemptions, we continue to be in dialogue. There is no particular line of clarity (at this point). Conversation continues on that front,” he mentioned in a post-earnings name with analysts Saturday. 

The financial institution had sought permission from RBI to conform with regulatory necessities resembling money reserve ratio and statutory liquidity ratio in a phased method. 

On completion of the merger, Vaidyanthan mentioned that the merger could also be accomplished sooner than what was indicated beforehand. 

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