HDFC Bank, CBoP merger ratio at 1:29

HDFC Bank today announced the merger ratio of Centurion Bank of Punjab (CBoP) with itself at 1:29.

According to a release issued by HDFC Bank to the BSE today, based on the joint valuation report submitted by Ernst & Young and Dalal & Shah, the board today approved the share swap ratio of 1 equity share of Rs 10 each of HDFC Bank for every 29 equity shares of Re 1 each held in Centurion Bank of Punjab. This share swap ratio is subject to due diligence to be conducted in this regard.

The bank's board observed that in the event of the merger of Centurion Bank of Punjab with HDFC Bank being approved at its meeting on February 28, 2008, it would consider making a preferential offer to its promoter Housing Development Finance Corporation (HDFC) to enable HDFC to maintain its shareholding percentage in the Bank, the release added.