RBI gives HDFC Bank selective regulatory relief
The Reserve Bank of India has authorized HDFC Bank Ltd and Housing Development Finance Corporation to choose regulatory relief to smooth out the merger, which is expected to be completed by July of this year.
According to an exchange announcement, the central bank has allowed the bank to achieve priority sector lending standards in a phased method over three years.
These obligations, which include lending to the poorer portions of the economy, are related to the loan book of a company.
However, following the merger, HDFC Bank will be required to maintain a particular level of cash reserve ratio, statutory liquidity ratio, and liquidity coverage ratio on the whole amalgamated balance sheet from the start.
Reuters reported earlier this week that the bank and the housing financier had generated sufficient cash to satisfy these obligations from the outset.