HDFC – Centurion BoP merger to create 3rd biggest bank

If HDFC bank and Centurion bank of Punjab merge then, it will be one of the biggest mergers India Inc has ever seen. The merged entity will be the third largest bank in India with a total asset size of over Rs 2 lakh crore, but still way behind its private sector rival ICICI Bank.

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Also HDFC Bank’s 700 branches will see an addition of 390 branches of Centurion, which has a stronghold in the North and South of the country.

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The market capitalisation of the combined entity is likely to be at Rs 65,000 to 70,000 crore. Though there may be cultural issues that both banks have to tackle post the merger, it will not be tough for both HDFC Bank and Centurion to integrated as the duo seems quite experienced on the M&A front.

Full article here.

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  • dinsan

    good one.. coz I just started my HDFC account.. ( salary account actually )… I should be getting more atms then 😉 and its a bad news for ICICI .. slightly.. competition can increase..

  • Liju Philip

    ICICI is too aggressive in its growth. HDFC has a long way to catch up. Anyway with 2009 fast approaching, the govt might be forced to open up the banking sector as per the WTO regulations. Hence the consolidation.

    Good for the industry.