Keki Mistry the vice-chairman and MD of HDFC, believes that the recent merger will give a boost to the customer base. Currently, 70 percent of HDFC customers do not bank with HDFC Bank.

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According to Mistry, if HDFC goes back to all these customers and asks them to shift their banking relationships to HDFC Bank, there will be a fair degree of success.

He also believes that the merger will give a mortgage boost to the company.

The Housing Development Finance Corporation (HDFC) board, India's leading housing finance company, approved the firm's and its subsidiaries' merger with HDFC Bank.

"Banks today have a significant proportion of retail loans as mortgage loans. With our book coming into HDFC Bank, the tenor of mortgage loans goes up to 5.5-6 years which is a massive plus for the bank's shareholders," he reasoned.

He doesn’t see any drag on the net interest margins (NIMs) beyond an immediate couple of quarters or so.

He doesn’t see any drag on the NIMs beyond an immediate couple of quarters.

HDFC and HDFC Bank deal will be earnings per share (EPS) accretive from day one, he said.

For the full interview, watch the accompanying video

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