INDIA BUSINESS WORLD - MAY 11th - MAY 31st - 2008
RBI OKAYS MERGER OF CENTURION BANK OF PUNJAB WITH HDFC BANK
The Reserve Bank of India (RBI) has approved the merger of Centurion Bank of Punjab (CBoP) with HDFC Bank and the amalgamation would be effective from May 23. “RBI hereby sanctions the appended scheme of amalgamation of CBoP (transferor bank) with HDFC Bank (transferee). The scheme will come into effect from May 23,” HDFC Bank stated in a filing to the BSE. The boards of HDFC Bank and CBoP had given in-principle approval for the merger in February. Following the nod, HDFC Bank had approved the share swap ratio of 1:29. As per the ratio, CBoP shareholders would get one share of HDFC Bank for every 29 shares held. With the merger, the combined entity will have a nationwide network of 1,148 branches and the deposits would climb to Rs 1,20,000 crore.
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