The Hindu : Business : HDFC Bank, Centurion Bank boards meet today

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HDFC Bank, Centurion Bank boards meet today

Special Correspondent

Biggest merger in the banking sectorShare-swap deal put at Rs. 10,000 cr.

MUMBAI: HDFC Bank and Centurion Bank of Punjab (CBoP) on Friday informed the Bombay Stock Exchange that a meeting of the boards of directors of the banks would be held on Saturday to consider, in-principle, a possible merger between them. This merger is considered as one of the biggest mergers in the banking sector. The share-swap deal is expected to be worth over Rs. 10,000 crore.

HDFC Bank, a new generation bank, finding Centurion Bank of Punjab, a good fit, as the latter also bringing in the same culture of a new generation bank. HDFC Bank had merged another new generation Times Bank with it few years ago. Centurion Bank, which was taken over by Sabre Capital and Bank Muscat, merged Bank of Punjab, another private bank to create Centurion Bank of Punjab. Rana Talwar promoted Sabre Capital’skey initiative is the successful completion of investment in Centurion Bank in India. Centurion Bank merged with Bank of Punjab to create a bank with 240 branches across India.

PTI reports:

HDFC Bank is the country’s second largest private sector lender, while CBoP is the fourth largest bank. HDFC Bank has about 746 branches across the country, while CBoP has 394 branches.

Centurion Bank of Punjab’s major shareholders include Bank of Muscat, HSBC Finance, Sabre Capital. Bank of Muscat holds the maximum equity of 14 per cent in the bank. Rana Talwar promoted Sabre Capital holds about 3.4 per cent stake in the bank.

Shares of HDFC Bank on Friday closed down 4.4 per cent at Rs. 1,474.95 on the Bombay Stock Exchange, while CBoP scrips closed at Rs. 56.40, a fall of 1.14 per cent from the previous close.

HDFC Bank has a promoter holding of 23.28 per cent, held jointly by HDFC, HDFC Investments and HDFC Holdings. The bank has 26.57 per cent FII holding, while local mutual funds and insurance firms own 3.39 per cent and 2.81 per cent, respectively. Central and State governments hold 1.08 per cent in the bank, according to the shareholding pattern of the bank as on December 31, 2007, as filed with the bourses. CBoP has no promoter holding and FIIs hold about 26.8 per cent stake in it. However, the bank has as many as 16 shareholders with a stake of more than one per cent each, totalling 56.3 per cent. The major holders include Bank of Muscat with over 14 per cent equity, HSBC 4.71 per cent, Deutsche Securities 3.95 per cent and Kephinance Investments Mauritius Pte about 6.13 per cent among others.

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