Hdfc Bank Limited · NSE:HDFCBANK
Hdfc Bank — Merger or Acquisition (April 2022)
12 slides from Hdfc Bank's merger presentation, Apr 5, 2022
Slide 1: Transformational Combination of HDFC Limited with HDFC Bank
Transformational Combination of Housing Development Finance Corporation Limited (“HDFC Limited”) with HDFC Bank Limited (“HDFC Bank”) April 4, 2022
Slide 2: Legal Disclaimer
Legal Disclaimer The transaction relates to securities of an Indian company and is proposed to be effected by means of a Scheme of Arrangement under Indian law. A transaction effected by means of a Scheme of Arrangement is not subject to the proxy solicitation or tender offer rules under the U.S. Se
Slide 3: Transaction overview
Transaction overview Closing Timeline and Approvals Transaction completion is subject to shareholders, creditors and regulatory approvals including from RBI, IRDAI, CCI, SEBI and Stock Exchange Closing is expected to be achieved within ~[18] months, subject to completion of regulatory approvals and
Slide 4: Full Stack Financial Services Conglomerate, Win Win for All Stakeholders
Full Stack Financial Services Conglomerate, Win Win for All Stakeholders 1 Structural drivers in place for housing sector. Housing demand poised to drive Indian economy 2 3 Ability to cross-sell to a large and growing customer base 4 Leveraging the power of distribution in urban, semi-urban and rura
Slide 5: Secured and long tenor product will lead to robust asset portfolio mix
Secured and long tenor product will lead to robust asset portfolio mix Loan Book Mix (%)(1) Note: As of Dec 31st, 2021 Net Advances Total Advances (INR Cr.)(1,2) 12,68,863 5,25,806 17,86,669 Pro Forma
Slide 6: Combination at the Right Time: Mortgages at the Cusp of Growth
Combination at the Right Time: Mortgages at the Cusp of Growth Enhancing Customer Lifetime Value Growing Importance of Mortgages for the Bank Sticky Product, Generating Greater Customer Lifetime Value Asset Tenor Liability Tenor 30 Days ~2 Years ~1 Year ~4 Years ~20 Years 1 3 - 5 Years Perpetual Opp
Slide 7: Leveraging the Power of Branch Banking: Well Poised for Sourcing Deposits and Housing Loans
Leveraging the Power of Branch Banking: Well Poised for Sourcing Deposits and Housing Loans Branch deposits compound with time 90+% Branches Less than 15 Years Old à At an Inflection Point Continued Branch expansion to increase reach 50+% of branches in Semi Urban and Rural aiding affordable housing
Slide 8: Ability to Enhance Customer Lifetime Value
Ability to Enhance Customer Lifetime Value Ability to Better Cross Sell with full suite of financial Products Life Insurance General Insurance Investment Products Credit Cards Health Insurance Mortgages Savings Accounts Combined Customer Base Personal Loans
Slide 9: Combination with Deep Multi-Decade Mortgage Underwriting Expertise Across Cycles
Combination with Deep Multi-Decade Mortgage Underwriting Expertise Across Cycles #1 Mortgage Player 45 years of Deep Domain Expertise Best-In-Class Cost of Operations ~3,500 Product Specialists Superior Risk Management Framework Core Financial Products Superior Scale and Distribution Strong Data Ana
Slide 10: Seam-less Integration
Seam-less Integration Well-entrenched and aligned processes would reduce lead time typically needed to unlock synergies Processes Minimal need towards optimization of any physical infrastructure assets Infrastructure Existing arrangement on Mortgages to continue; Ability to further scale up during b
Slide 11: Pro Forma Impact on Key Metrics
Pro Forma Impact on Key Metrics +34% +44% +8% Equity Shares Outstanding (# MM) (1) Net Worth (INR Cr.) (1) Book Value per Share (INR / Share) 554 181 229,640 115,400 414 638 Delta +42% Advances (INR Cr.)(1) 12,68,863 5,25,806 +30 bps CAR (%)(1) 19.5% 22.4% Note: 1. Standalone, as of Dec 31st, 2021;
Slide 12: Indicative Timelines and Key Approvals
Indicative Timelines and Key Approvals Approval of the transaction and other documents including Scheme of Arrangement, valuation report, fairness opinion SEBI/Stock Exchange RBI IRDAI CCI Filing of Scheme NCLT approval, creditors approval, other approvals ROC Filing Allotment of shares Board Approv