Deal between HDFC and Centurion worth $3b

Mumbai: A proposed acquisition of Centurion Bank of Punjab by HDFC Bank, India's No 3 lender, is likely to be valued at Rs100-Rs120 billion ($2.5-$3 billion), the Business Standard said on Sunday.

HDFC Bank agreed on Saturday to buy its smaller rival in what would be the country's biggest financial sector buyout, if the all-share deal is approved by shareholders and regulators.

The acquisition would help HDFC extend its reach before a 2009 central bank review that may allow foreign banks to buy Indian lenders.

But a union spokesman said on Sunday they would oppose the merger between the two private banks if it caused job losses, even as nearly a million bank workers prepared for a two-day nationwide strike this week against proposed mergers between state-run banks.

Shares in Centurion Bank ended down more than one per cent at Rs56.4 on Friday, valuing the bank at about $2.63 billion.