HDFC Bank, Centurion boards okay merger plan

The boards of HDFC Bank and Centurion Bank of Punjab have approved in principle a merger between the two banks. The boards of both banks will again meet on February 25 to consider the share swap ratio after the receipt of the valuation reports. Mr Deepak Parekh, Chairman, HDFC, the promoter of HDFC Bank, said: “We get scale…we will get about 400 branches at one go. Today, size is important in the banking sector. They (Centurion) have good presence in Punjab - thanks to Bank of Punjab, which was merged with Centurion. Similarly, they have a large branch network in Kerala following the merger of Lord Krishna Bank. This would help us leverage the NRI business and probably tap opportunities in the Gulf.”