The Reserve Bank of India (RBI) has finally approved the scheme of amalgamation of Centurion Bank of Punjab Ltd with HDFC Bank Ltd. with effect from May 23, 2008. All the branches of Centurion Bank of Punjab will function as branches of HDFC Bank with effect from May 23, 2008, an official release stated.

With RBI’s approval, all requisite statutory and regulatory approvals for the merger have been obtained.

The boards of HDFC Bank and CBoP had given in-principle approval for the merger of both the banks in February.

Following the in-principle nod, HDFC Bank had approved the share swap ratio of 1:29. As per the ratio CBoP shareholder would get one share of HDFC bank for every 29 shares held.

The combined entity would have a nationwide network of 1,167 branches; a strong deposit base of around Rs 1220 billion and net advances of more than Rs 890 billion.

The balance sheet size of the combined entity would be over Rs 1630 billion.