By Kosaku Narioka

HDFC Bank Ltd. and Housing Development Finance Corp. announced a merger Monday that they said will enable seamless delivery of home loans and improve the pace of credit growth in the economy.

"This transaction helps in realizing the potential of what HDFC's housing finance business can achieve by leveraging the distribution and customer base of HDFC Bank," Keki M. Mistry, chief executive of Housing Development Finance Corp., said in a joint statement.

Shareholders of Housing Development Finance Corp. are expected to receive 42 shares of HDFC Bank for every 25 shares of Housing Development Finance Corp. they hold.

The merger plan is subject to approvals from India's central bank and other regulators, respective shareholders and creditors, the companies said.

Housing Development Finance Corp. shares were recently 13% higher and HDFC Bank shares were 9.5% higher.


Write to Kosaku Narioka at kosaku.narioka@wsj.com


(END) Dow Jones Newswires

04-04-22 0045ET