On Monday, the tech-savvy RPG Group Chairman took to Twitter to express his thoughts on the deal, writing, “With this combination, India’s financial scene is about to explode.”
It has been anticipated that India’s most valuable lender, HDFC Bank, will take over the country’s largest mortgage lender in a $40 billion deal on Monday, resulting in the creation of a financial services titan and the largest transaction in the country’s corporate history.
Harsh Goenka, the tech-savvy chairman of RPG Group, took to Twitter on Monday to express his thoughts on the merger, writing, “With this combination, the Indian financial scene is ready to explode.”” “Imagine Rohit and Kohli wrapped into one, or Akshay Kumar and Ranvir Singh, or the United States and Russia,” he added. The outcome is unmistakable: dominance! The Indian financial scene is about to erupt with the development of one of the world’s largest and greatest financial institutions as a result of this merger! #hdfcmerger.”
This comes as India’s largest mortgage lender agreed to buy one of the country’s most valuable banks, creating a nearly $190 billion behemoth to ride the world’s fastest-growing major economy’s surge in home loans and consumer spending.
The Housing Development Finance Corp., which provides mortgages to more than half of India’s 1.4 billion inhabitants, would own 41% of HDFC Bank Ltd., a bank it helped establish 28 years ago. According to Bloomberg, the two Mumbai-based companies’ stock soared after the news, making it one of the year’s biggest M&A acquisitions.
The deal, which would form one of India’s largest financial services organisations, comes after the banking regulator proposed that significant non-banking finance companies convert to banks in order to avoid a repeat of the country’s massive shadow lending crisis in 2018. The recovery from the epidemic in India, as well as improvements in the labour sector, have boosted consumer demand and improved the retail portfolios of lenders.