The colossal merger of Housing Development Finance Corporation (HDFC) and HDFC Bank in India&nbsp;has left financial advisers with little to celebrate.

The $64 billion merger between HDFC and HDFC Bank has created one of the most valuable banks worldwide. But surprisingly, the advisers involved in completing the merger are reaping meagre rewards.

Sources familiar with the matter tell Bloomberg that approximately 18 advisers involved in the merger have had to settle for a fee pool of just over $1 million. Global banking giants like Citigroup, Goldman Sachs, JPMorgan Chase, and Jefferies were among the advisers.

In an interesting twist, big players like Morgan Stanley and Bank of America will be cornering the lion's share of the fee pool, leaving the rest with only a token amount.

The reason behind this seemingly disproportionate distribution lies in the limited role the advisers played during the merger process.&nbsp;

"India is a tough place from a fee perspective unless one can offer value-added services or is structuring complex transactions," Bloomberg quoted Pranav Haldea, managing director of Prime Database Group, as saying.&nbsp;

Apparently, the board and executives, led by Deepak Parekh, the then chairman of HDFC, were the main driving force behind the merger. As a result, many of the advisers were caught off guard, only learning about the merger a day before it was announced.

With minimal work to be done on the deal, their contribution was significantly diminished.

While Morgan Stanley and Bank of America received higher compensation, as they provided a fair opinion on the valuation, the remaining advisers reportedly did not have much to contribute. However, it is important to note that these struggles are not unique to india.

Financial advisers worldwide have been grappling with a drop in the value of mergers, acquisitions, and initial public offerings, amounting to a staggering $1 trillion year-on-year decline in the first half of this year. This downturn has forced many banks to implement job cuts in their investment banking divisions globally.

HDFC among the top 10 valuable banks&nbsp;

The newly-combined HDFC is the first Indian entity to rank among the world's most valuable banks. HDFC's entry into the top 10 marks a new challenge to some of the&nbsp;largest American and Chinese lenders, who have been occupying the&nbsp;top spots for several decades now.&nbsp;

The merged entity, valued at about $172 billion, is the fourth-most valuable bank in the world, behind JPMorgan Chase &amp; Co, Industrial and Commercial Bank of China Ltd, and Bank of America, according to data compiled by Bloomberg.&nbsp;

The colossal merger of Housing Development Finance Corporation (HDFC) and HDFC Bank in India has left financial advisers with little to celebrate. The $64 billion merger between HDFC and HDFC Bank has created one of the most valuable banks worldwide.

The colossal merger of Housing Development Finance Corporation (HDFC) and HDFC Bank in India has left financial advisers with little to celebrate. The $64 billion merger between HDFC and HDFC Bank has created one of the most valuable banks worldwide. But surprisingly, the advisers involved in completing the merger are reaping meagre rewards. Sources familiar with the matter tell Bloomberg that approximately 18 advisers involved in the merger have had to settle for a fee pool of just over $1 million. Global banking giants like Citigroup, Goldman Sachs, JPMorgan Chase, and Jefferies were among the advisers. In an interesting twist, big players like Morgan Stanley and Bank of America will be cornering the lion's share of the fee pool, leaving the rest with only a token amount. The reason behind this seemingly disproportionate distribution lies in the limited role the advisers played during the merger process. "India is a tough place from a fee perspective unless one can offer value-added services or is structuring complex transactions," Bloomberg quoted Pranav Haldea, managing director of Prime Database Group, as saying. Apparently, the board and executives, led by Deepak Parekh, the then chairman of HDFC, were the main driving force behind the merger. As a result, many of the advisers were caught off guard, only learning about the merger a day before it was announced. With minimal work to be done on the deal, their contribution was significantly diminished. While Morgan Stanley and Bank of America received higher compensation, as they provided a fair opinion on the valuation, the remaining advisers reportedly did not have much to contribute. However, it is important to note that these struggles are not unique to india. Financial advisers worldwide have been grappling with a drop in the value of mergers, acquisitions, and initial public offerings, amounting to a staggering $1 trillion year-on-year decline in the first half of this year. This downturn has forced many banks to implement job cuts in their investment banking divisions globally. HDFC among the top 10 valuable banks The newly-combined HDFC is the first Indian entity to rank among the world's most valuable banks. HDFC's entry into the top 10 marks a new challenge to some of the largest American and Chinese lenders, who have been occupying the top spots for several decades now. The merged entity, valued at about $172 billion, is the fourth-most valuable bank in the world, behind JPMorgan Chase & Co, Industrial and Commercial Bank of China Ltd, and Bank of America, according to data compiled by Bloomberg.

The great $64 billion HDFC merger leaves financial advisers with little to celebrate

India's HDFC Bank will soon rank among the world's most valuable banks after completing a landmark merger.

The tieup of HDFC Bank Ltd. and Housing Development Finance Corp. will make the resulting entity fourth biggest in terms of equity market capitalisation, just behind JPMorgan Chae &amp; Co., Industrial and Commercial Bank of China Ltd. and Bank of America Corp.&nbsp;

The tieup is valued at about $172 billion, Bloomberg reported.

<h2>How big will be the new HDFC Bank entity?</h2>

The new entity will have nearly 120 million customers, more than the population of Germany. The branch network will increase to over 8,300 along with a collective headcount of over 177,000 employees.

Also read |&nbsp;<a href="https://www.wionews.com/trending/india-bank-job-advertisement-says-2021-batch-students-not-eligible-then-clarifies-402664">India: Bank job advertisement says ‘2021 batch students not eligible’, then clarifies</a>

In terms of market capitalisation, the bank will leave behind its Indian competitors State Bank of India and ICICI Bank with market capitalisations of about $62 billion and $72 billion respectively, the Bloomberg report added while citing data up to June 22.&nbsp;

<h2>HDFC-HDFC Bank merger&nbsp;</h2>

The merger of housing finance major HDFC with HDFC Bank, the country's biggest private lender, will come into effect on July 1, according to HDFC Chairman Deepak Parekh. The merger will reportedly mark the biggest transaction in India's corporate history.

The merger deal of HDFC Bank and HDFC was announced on April 4 last year.

The transaction was proposed to "create a large balance sheet and net worth that would allow greater flow of credit into the economy", according to the lender.

Also watch |&nbsp;World Business Watch: HDFC Bank's net profit jumps by 18.5%

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The bank had said that the merger will also enable it to underwrite larger ticket loans, including infrastructure loans.

HDFC Limited offers home loans to the Low Income Group (LIG) and Middle Income Group (MIG) segments under the affordable housing initiatives of the government. "Access to housing finance for this category would be improved further on account of low-cost funds available with HDFC Bank," the bank said.

After the merger deal, HDFC Bank will be entirely owned by public shareholders.&nbsp;The existing shareholders of HDFC will own 41 per cent of the lender.

Under the 25:42 swap ratio, every shareholder of HDFC will receive 42 shares of HDFC Bank for every 25 shares they own.

WATCH WION LIVE HERE

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India's HDFC Bank will soon rank among the world's most valuable banks after completing a landmark merger. The tieup of HDFC Bank Ltd. and Housing Development Finance Corp.

India's HDFC Bank will soon rank among the world's most valuable banks after completing a landmark merger. The tieup of HDFC Bank Ltd. and Housing Development Finance Corp. will make the resulting entity fourth biggest in terms of equity market capitalisation, just behind JPMorgan Chae & Co., Industrial and Commercial Bank of China Ltd. and Bank of America Corp. The tieup is valued at about $172 billion, Bloomberg reported. How big will be the new HDFC Bank entity? The new entity will have nearly 120 million customers, more than the population of Germany. The branch network will increase to over 8,300 along with a collective headcount of over 177,000 employees. Also read | India: Bank job advertisement says ‘2021 batch students not eligible’, then clarifies In terms of market capitalisation, the bank will leave behind its Indian competitors State Bank of India and ICICI Bank with market capitalisations of about $62 billion and $72 billion respectively, the Bloomberg report added while citing data up to June 22. HDFC-HDFC Bank merger The merger of housing finance major HDFC with HDFC Bank, the country's biggest private lender, will come into effect on July 1, according to HDFC Chairman Deepak Parekh. The merger will reportedly mark the biggest transaction in India's corporate history. The merger deal of HDFC Bank and HDFC was announced on April 4 last year. The transaction was proposed to "create a large balance sheet and net worth that would allow greater flow of credit into the economy", according to the lender. Also watch | World Business Watch: HDFC Bank's net profit jumps by 18.5% × The bank had said that the merger will also enable it to underwrite larger ticket loans, including infrastructure loans. HDFC Limited offers home loans to the Low Income Group (LIG) and Middle Income Group (MIG) segments under the affordable housing initiatives of the government. "Access to housing finance for this category would be improved further on account of low-cost funds available with HDFC Bank," the bank said. After the merger deal, HDFC Bank will be entirely owned by public shareholders. The existing shareholders of HDFC will own 41 per cent of the lender. Under the 25:42 swap ratio, every shareholder of HDFC will receive 42 shares of HDFC Bank for every 25 shares they own. WATCH WION LIVE HERE

India's HDFC to be among world's most valuable banks after mega merger

HDFC Bank, India's largest private lender, is buying its largest shareholder in a $40 billion deal, the country's largest ever, to create a financial services behemoth that can better meet surging credit demand.

HDFC Bank's collaboration with housing finance giant HDFC Ltd, which controls around 21% of the lender, will boost the bank's 68 million customers and dramatically extend its home loan portfolio, while also allowing for larger loans.

It will also help HDFC Bank close the gap with the state-run lender and bigger rival State Bank of India, while increasing competition in the home credit market as the pandemic's effects fade.&nbsp;

Several observers say that the merger's timing caught everyone off guard, and that it is a win-win situation for all parties.&nbsp;

"Clients will gain the most from the synergy created by the combination of HDFC Limited and HDFC Bank Limited, whether they are bank account holders, mortgage customers, or insurance customers," In an interview with Zee Media, Vibha Padalkar, Managing Director and Chief Executive Officer of HDFC Life, said.

In terms of total assets, the merger, which is anticipated to be completed in 18 months, would dramatically increase the bank's advantage over rival private sector peers ICICI Bank Ltd. and Axis Bank Ltd.

According to data as of December 31, the amalgamated HDFC Bank will have a loan book of Rs 17.9 trillion, far ahead of ICICI Bank's Rs 8.14 trillion and Axis Bank's Rs 6.65 trillion.

At the end of December, India's largest lender, State Bank of India (SBI), had total loans of Rs 26.64 trillion.&nbsp;

The merger comes as the Reserve Bank of India (RBI) continues to tighten non-bank lending regulations in order to bring them up to par with banks, leaving giant shadow banks with little incentive to operate independently.

In the midst of a surge in demand for house loans, the combined firm will benefit from adding a huge portfolio of mortgages.&nbsp;

(With inputs from agencies)

HDFC Bank, India's largest private lender, is buying its largest shareholder in a $40 billion deal, the country's largest ever, to create a financial services behemoth that can better meet surging credit demand.

HDFC Bank, India's largest private lender, is buying its largest shareholder in a $40 billion deal, the country's largest ever, to create a financial services behemoth that can better meet surging credit demand. HDFC Bank's collaboration with housing finance giant HDFC Ltd, which controls around 21% of the lender, will boost the bank's 68 million customers and dramatically extend its home loan portfolio, while also allowing for larger loans. It will also help HDFC Bank close the gap with the state-run lender and bigger rival State Bank of India, while increasing competition in the home credit market as the pandemic's effects fade. Several observers say that the merger's timing caught everyone off guard, and that it is a win-win situation for all parties. "Clients will gain the most from the synergy created by the combination of HDFC Limited and HDFC Bank Limited, whether they are bank account holders, mortgage customers, or insurance customers," In an interview with Zee Media, Vibha Padalkar, Managing Director and Chief Executive Officer of HDFC Life, said. In terms of total assets, the merger, which is anticipated to be completed in 18 months, would dramatically increase the bank's advantage over rival private sector peers ICICI Bank Ltd. and Axis Bank Ltd. According to data as of December 31, the amalgamated HDFC Bank will have a loan book of Rs 17.9 trillion, far ahead of ICICI Bank's Rs 8.14 trillion and Axis Bank's Rs 6.65 trillion. At the end of December, India's largest lender, State Bank of India (SBI), had total loans of Rs 26.64 trillion. The merger comes as the Reserve Bank of India (RBI) continues to tighten non-bank lending regulations in order to bring them up to par with banks, leaving giant shadow banks with little incentive to operate independently. In the midst of a surge in demand for house loans, the combined firm will benefit from adding a huge portfolio of mortgages. (With inputs from agencies)

In India's largest-ever M&A, HDFC to merge with HDFC Bank

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The great $64 billion HDFC merger leaves financial advisers with little to celebrate

India's HDFC to be among world's most valuable banks after mega merger

In India's largest-ever M&A, HDFC to merge with HDFC Bank