HDFC Bank share down 3%, Centurion Bank 10%
HDFC Bank has approved the share swap ratio for the proposed merger of Centurion Bank of Punjab at 1:29, that is one share (Rs 10 each) of HDFC Bank for every 29 shares (Re 1 each) held in Centurion Bank of Punjab.
By INDIATIMES NEWS NETWORK |
MUMBAI: HDFC Bank has approved the share swap ratio for the proposed merger of Centurion Bank of Punjab at 1:29, that is one share (Rs 10 each) of HDFC Bank for every 29 shares (Re 1 each) held in Centurion Bank of Punjab.
The market was expecting a swap ratio of 1:20.
The bank's board will meet on Feb 28 again on the merger, wherein it will also consider a preferential offer to its parent, Housing Development Finance Corporation, to enable HDFC to maintain its shareholding in the bank.
On Saturday, the boards had approved in-principle a merger between the two banks.
Centurion Bank of Punjab was formed by the merger of Centurion Bank and Bank of Punjab. The former had a well-managed and growing retail assets business, including leadership positions in two-wheeler loans and commercial vehicle loans, while Bank of Punjab had a strong retail deposit customer base in North India in addition to a sizable SME and agricultural portfolio.
In August 2007 Centurion Bank of Punjab acquired the Lord Krishna Bank.
At 10:17 am, HDFC Bank shares were Rs 1,431 on BSE, down nearly 3 per cent from Friday���s close. It had touched a high of Rs 1,524 in early trade.
Centurion Bank of Punjab was down nearly 10 per cent at Rs 51.20. The share saw a high of Rs 53 and low of Rs 50 in trade so far.
The market was expecting a swap ratio of 1:20.
The bank's board will meet on Feb 28 again on the merger, wherein it will also consider a preferential offer to its parent, Housing Development Finance Corporation, to enable HDFC to maintain its shareholding in the bank.
On Saturday, the boards had approved in-principle a merger between the two banks.
Centurion Bank of Punjab was formed by the merger of Centurion Bank and Bank of Punjab. The former had a well-managed and growing retail assets business, including leadership positions in two-wheeler loans and commercial vehicle loans, while Bank of Punjab had a strong retail deposit customer base in North India in addition to a sizable SME and agricultural portfolio.
In August 2007 Centurion Bank of Punjab acquired the Lord Krishna Bank.
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At 10:17 am, HDFC Bank shares were Rs 1,431 on BSE, down nearly 3 per cent from Friday���s close. It had touched a high of Rs 1,524 in early trade.
Centurion Bank of Punjab was down nearly 10 per cent at Rs 51.20. The share saw a high of Rs 53 and low of Rs 50 in trade so far.
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