HDFC twins' merger: RBI awaits more data to decide on dispensation request

At present, HDFC, being a non-banking financial company, does not have to comply with the CRR, SLR and priority sector obligations like banks

The Reserve Bank of India (RBI) is yet to grant dispensations for the proposed merger of Housing Development Finance Corporation (HDFC) with HDFC Bank, even though the banking regulator has issued a no-objection letter to the lender. According to top RBI sources, the central bank will have to look at more data before deciding whether the relaxations sought by India’s largest private sector lender can be granted.

HDFC Bank had requested the RBI to allow it to adopt a phased approach to meet key regulatory requirements relating to the statutory liquidity ratio (SLR), cash reserve ratio (CRR), priority sector lending