HDFC Merger: The largest merger in India's history, will become the fourth largest bank in the world

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One of the largest banks in India is going to merge with HDFC Bank Limited and Housing Development Finance Corp (HDFC). With this merger, it will become one of the most valuable banks in the world. This will happen for the first time. With this merger, a new competitor will enter the market against American and Chinese banks, which will be close to the top position. The merger between HDFC Bank and HDFC will take effect from July 1.

It will become the fourth largest bank in the world in terms of market value

With the merger of HDFC Bank Limited and Housing Development Finance Corp, a bank with the fourth largest market capitalization in the world will come into existence. Which will rank fourth after JPMorgan Chase & Co, Industrial & Commercial Bank of China Ltd and Bank of America Corp. The value of this bank will be around 172 billion dollars.

The merger will be effective from July 1

The merger between the two giants will take effect from July 1 and will create a new HDFC Bank with 120 million customers. The number of these customers will be more than the population of Germany. With this the number of branches of the bank will cross 8300 and the number of its employees will also touch 177000.

In terms of market capitalization, India's leading banks will also lag behind

With this merger, SBI and ICICI Bank, one of India's largest banks, will also fall behind HDFC in terms of market capitalization. Currently the market cap of SBI and ICICI is around 62 billion and 79 billion dollars respectively.

A look at the list of the world's largest banks...

Bank Name	Market Cap
JP Morgan Chase	416.5
ICBC	228.3
Bank of America	227.7
HDFC after merger	171.8
Agricultural Bank of China	168.9
China Construction Bank	162.8
HSBC	156.6
Wells Fargo	156.2
Bank of China	147.3
Morgan Stanley	144.2

(Note | Market value figures in billions of dollars)