CBoP shareholders approve merger with HDFC

Written by Agencies | Mumbai, March 28: | Updated: Mar 28 2008, 19:06pm hrs
Centurion Bank of Punjab's shareholders on Friday approved the scheme of amalgamation with the private sector lender HDFC. The shareholders approved the scheme of amalgamation on Friday at the extraordinary general meeting, CBoP said in a filing to the Bombay Stock Exchange.

Subsequently, the bank would seek approval from the Reserve Bank of India to seal the transaction, the filing said.

On February 25, HDFC Bank had approved a share swap ratio of 1:29 to take over CBoP. This means that for every 29 shares of CBoP, the CBoP shareholders would be offered one share of the leading housing lender.

HDFC Bank is the country's second largest private sector lender after ICICI Bank, while CBoP is the fourth largest bank. HDFC Bank has about 746 branches pan-India, while CboP has 394.

Post merger the combined entity has a market capitalisation of about Rs 58,000 crore, based on their current market values.