HDFC is set to fold into HDFC Bank in a move that will propel the bank closer to SBI in size and way ahead of private peers ICICI Bank and Axis Bank. Setting to rest any speculation on leadership at HDFC Bank, HDFC's Keki Mistry clarified that HDFC Bank CEO Sashidhar Jagdishan will continue, even as Keki looks to retire on turning 70.

Speaking about the deal, the HDFC Bank MD and CEO said, “The micro-enterprises business is firing from all sides, you probably would have seen it in the recent quarter. So the ability for us to organically get the priority sector assets is much better than what it was six years ago. In addition to that, if this merger does get approved and gets consummated, we can sort of unleashing the affordable housing product from our 50 percent strong distribution”

Also Read | HDFC, HDFC Bank to merge; ratio 25 HDFC shares for 42 HDFC Bank shares

On liquidity, Jagdishan said, “I think both institutions have enough accesses, which could qualify for that. Nevertheless, of course, this is just at a point in time, over the next 18 months, assuming that is the time period, which will take for the regulatory approvals to come through, both institutions will be growing, so the requirement could be larger.”

Also Read | HDFC twins surge as mortgage lender's board approves merger with HDFC Bank

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