HDFC To Infuse Rs 4,000cr To Keep Up Stake In HDFC Bank

MUMBAI: Housing Development Finance Corporation will infuse over Rs 4,000 crore in HDFC Bank to maintain its shareholding in the leading private sector lender, following its proposed amalgamation with the Centurion Bank of Punjab. The board of directors of HDFC Bank had earlier said that in the event of the amalgamation with Centurion Bank of Punjab, it would consider making a preferential offer to its promoter, Housing Development Finance Corporation Ltd, to enable HDFC to maintain its shareholding percentage in the bank. On February 23, HDFC Bank and Centurion Bank of Punjab had accorded, in principle, to merge to create the country''s largest private sector financial institution in terms of branch network. The Board of Directors at its meeting approved the draft scheme of amalgamation and the merger pact and reaffirmed the share swap ratio and the issuance of one equity share of Rs 10 each of the HDFC Bank for every 29 equity shares of Re 1 each held in Centurion Bank of Punjab Ltd.