Merger
4.0 HDFC BANK AND CENTURION BANK OF PUNJAB- A STUDY
The Housing Development Finance Corporation Limited (HDFC) was first to receive approval of Reserve Bank of India to set up a bank in the private sector in liberalized era in
1994. The Bank was incorporated in August 1994 in the name of ‘HDFC Bank Limited’ with its registered office in Mumbai, India. HDFC Bank commenced operations as Scheduled Commercial Bank in 1995. The mission of HDFC Bank is to become World-Class Indian Bank. The business philosophy of HDFC Bank is based on four core values- Operational Excellence, Customer Focus, Product Leadership and People.
At present, HDFC Bank has vast network of 2150 branches spread in 1141 cities across India. All branches are linked on real time basis. The Bank also has 6838 networked ATMs across these cities. All the bank branches have online connectivity which enables the bank to offer speedy funds transfer facilities to its customers.
Centurion Bank of Punjab Ltd. Was incorporated on 30th June 1994 and the certificate of Commencement of Business on July 20th 1994. It was promoted as a joint venture between 20th Century Finance Corporation Ltd and its Associates and Keppel Group of Singapore. In 1995, the Bank was set up in fully computerized environment with ATM facility at every branch and computer networking between branches. It claimed to ‘Bank with difference’. The Bank has for the first time in the country, the concept of ‘Anywhere Banking’ which enables to operate the account from any other branch of the Bank The amalgamation of the Centurion Bank of Punjab with HDFC Bank was done in May, 2008. HDFC bank was merged with Centurion Bank of Punjab with motive of expansion of size and benefits of scope economics. It was a voluntary merger. There was significant value addition of HDFC in terms of increase branch network, geographic reach, customer base and a bigger pool of skilled manpower.
For HDFC Bank, this merger provided an
The Housing Development Finance Corporation Limited (HDFC) was first to receive approval of Reserve Bank of India to set up a bank in the private sector in liberalized era in
1994. The Bank was incorporated in August 1994 in the name of ‘HDFC Bank Limited’ with its registered office in Mumbai, India. HDFC Bank commenced operations as Scheduled Commercial Bank in 1995. The mission of HDFC Bank is to become World-Class Indian Bank. The business philosophy of HDFC Bank is based on four core values- Operational Excellence, Customer Focus, Product Leadership and People.
At present, HDFC Bank has vast network of 2150 branches spread in 1141 cities across India. All branches are linked on real time basis. The Bank also has 6838 networked ATMs across these cities. All the bank branches have online connectivity which enables the bank to offer speedy funds transfer facilities to its customers.
Centurion Bank of Punjab Ltd. Was incorporated on 30th June 1994 and the certificate of Commencement of Business on July 20th 1994. It was promoted as a joint venture between 20th Century Finance Corporation Ltd and its Associates and Keppel Group of Singapore. In 1995, the Bank was set up in fully computerized environment with ATM facility at every branch and computer networking between branches. It claimed to ‘Bank with difference’. The Bank has for the first time in the country, the concept of ‘Anywhere Banking’ which enables to operate the account from any other branch of the Bank The amalgamation of the Centurion Bank of Punjab with HDFC Bank was done in May, 2008. HDFC bank was merged with Centurion Bank of Punjab with motive of expansion of size and benefits of scope economics. It was a voluntary merger. There was significant value addition of HDFC in terms of increase branch network, geographic reach, customer base and a bigger pool of skilled manpower.
For HDFC Bank, this merger provided an
References: 1. Gupta Sumeet & Verma Renu, “Comparative Analysis of Financial Performance of Private Sector Banks in India: Application of CAMEL Model”, Journal of Global Economy, Vol. 4, No.2, April-June, 2008, pp. 144-159. 2. Jain Paras Mal, “Consolidation in Banking Sector Through Mergers and Acquisitions”, “Banking Reforms and Globalisation”, ed. by Mohan Prasad Shrivastava, Pradeep Kumar Pandey, V.P. Vidyarthi, APH Publishing Corporation, New Delhi, 2007, pp. 93-105. 3. Joshua Okpanachi, “Comparative Analysis of the Impact of Mergers and Acquisitions on Financial Efficiency of Banks in Nigeria”, Journal ofAccounting and Taxation, Vol. 3(1), pp. 1-7, May, 2011. 4. Kaur Pardeep & Kaur Gian, “Impact of Mergers on the Cost Efficiency of Indian Commercial Banks”, Eurasian Journal of Business and Economics, 3(5), 2010, pp. 27-50. 5. Prajapati Sadhana, “Mergers & Acquisitions in the Indian Banking system- An Overview”, International Referred Research Journal, ISSN-0974, 2832, Vol. II, Issue 19, August 2010. 9. Singh Surendra Prasad, “Impact of Consolidation/Merger in Indian Banking” in “Banking Reforms and Globalisation”, ed. By Mohan Prasad Shrivastava, Pradeep Kumar Pandey, V.P. Vidyarthi, APH Publishing Corporation, New Delhi, 2007, pp.119-127. 10. Sultan Singh, “Banking Sector Reforms in India”, Kanishka Publishers, New Delhi, pp.131-144, 2007. 11. Tiwari Amdhesh Kr, “Mergers and Acquisitions in Indian Banking Industry- A Case Study”, APJRBM, Vol.2, Issue 2, February, 2011.. Annual Reports of HDFC Bank, Various Issues, www.hdfcbank.com.