HDFC-CBOP MERGER

The merger of Centurion Bank of Punjab (CBoP) with HDFC Bank is proceeding at a brisk pace. While the boards of both the banks today gave their in-principle approvals to the merger, they will meet again on Feb25(Monday) to consider the swap ratio and later on Feb28(Thursday) to consider the draft scheme of amalgamation.

Initially centurion bank has acquired BankMuscat's Indian operations in 2003,followed by Bank of punjab in 2005,then it became centurion bank of punjab(CBOP).now HDFC acquiring CBOP,so that HDFC bank will become very strong. Already HDFC has a strong presence in western and southern india,but CBOP has its strong presence in north india.

Sources at both the banks did not give a deadline as to when the entire merger process would be completed. Both the banks have already appointed valuers to suggest a share swap ratio. Market observers, who expect an all-stock deal, are speculating a swap ratio in the range of one share of HDFC Bank for 15-20 shares of CBoP.HDFC Bank's last traded price Rs1474.Centurion bank of punjab's last traded price is Rs 58