The boards of HDFC Bank and HDFC on Friday gave their final approval to the reverse merger of the mortgage lender into the private sector bank.

In a late evening regulatory announcement, both companies said that the appointed date for the merger will be July 1.

The appointed date for the merger of HDFC Investments and HDFC Holdings Ltd into HDFC will be June 30.

The boards also decided that July 13 will be the record date for determining shareholders of the corporation who will be allotted shares of HDFC Bank.

According to the share swap announcement made earlier, HDFC shareholders will get 42 shares of the private sector lender for every 25 shares held.

Ahead of the much-awaited merger announcement between the two, the mortgage lender said it has acquired an additional 0.5097 per cent stake in HDFC Ergo to make it a subsidiary.

HDFC said in a regulatory filing that it acquired 36.4 lakh equity shares of the general insurer representing 0.5097 per cent of its total issued and paid-up share capital from ERGO International AG, the other promoter.

“Post the said acquisition, HDFC Ltd holds 50.50 per cent of the total paid-up share capital of HDFC Ergo. Accordingly, HDFC Ergo has become a subsidiary of HDFC Limited,” it said.

This is part of the reverse merger exercise of HDFC with HDFC Bank. The Reserve Bank of India (RBI) had permitted the transfer of shareholding of HDFC Ltd in HDFC Ergo to HDFC Bank and advised that HDFC Ltd or HDFC Bank should increase the shareholding in the general insurance company to more than 50 per cent before the effective date of the merger scheme. Once the reverse merger is done, HDFC Bank will hold this stake.

Deepak Parekh, the HDFC chairman, said the reverse merger will deepen the synergies between HDFC Bank and HDFC and that home loans will be complemented by the core strengths of the private sector bank.

Parekh added that for HDFC Bank, a home loan customer marks the beginning of a journey of having a customer in perpetuity and the lender is excited at the prospect of cross-selling an array of asset and liability products to home loan borrowers.