India cenbank gives HDFC Bank selective regulatory relief post HDFC merger

Housing Development Finance

21/04/2023 11:29

MUMBAI, April 21 (Reuters) - The Reserve Bank of India
has allowed HDFC Bank Ltd  HDBK.NS  and Housing Development
Finance Corporation  HDFC.NS  select regulatory relief to smooth
out the merger between the two organisations, set to conclude by
July this year.
    The central bank has permitted the bank to meet priority
sector lending requirements in a staggered fashion over three
years, the bank said in an exchange notification.
    These requirements, which include lending to weaker segments
of the economy, are linked to an organisation's loan book.
    However, post the merger, HDFC Bank will need to comply with
requirements to hold a certain level of cash reserve ratio,
statutory liquidity ratio and liquidity coverage ratio on the
entire merged balance sheet, right from the beginning.
    Earlier this week, Reuters reported that the bank and the
housing financier had raised adequate liquidity to meet these
requirements from the start.
    

 (Reporting by Ira Dugal; Editing by Janane Venkatraman)
 ((Ira.Dugal@thomsonreuters.com; +91-9833024892;))