S&P: HDFC Bank unchanged

Standard & Poor's said its ratings and outlook on HDFC Bank Ltd. (BBB-/stable/A-3) will not be immediately affected by the announcement of the bank's proposed merger with India's privately owned Centurion Bank of Punjab Ltd.

Despite Centurion being about one-fifth of HDFC Bank in terms of balance sheet size, the latter's business profile is likely to be strengthened by the merger as Centurion has a good financial profile, the agency noted.

S&P said that the banks' boards are scheduled to meet on Feb. 28 to consider the merger and the draft scheme of amalgamation.

If the merger materializes, it is expected to strengthen HDFC Bank's distribution network - and hence the bank's market position - especially in the Indian states of Punjab and Kerala, the agency noted.

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