MUMBAI: Banking shares took a severe beating on Monday led by losses in index heavyweight HDFC Bank after its merger with Centurion Bank of Punjab.
At 11 am, BSE Bankex, the biggest sector loser, fell 2.71 per cent to 9,874.88. Centurion Bank of Punjab (down 9.93%), Bank of India (4.43%), HDFC Bank (4.41%), Axis Bank (2.85%) and State Bank of India (2.02%) were under pressure.
HDFC Bank approved the share swap ratio for the proposed merger of Centurion Bank of Punjab at 1:29, that is one share (Rs 10 each) of HDFC Bank for every 29 shares (Re 1 each) held in Centurion Bank of Punjab.
The market was expecting a swap ratio of 1:20.
The bank's board will meet on Feb 28 again on the merger, wherein it will also consider a preferential offer to its parent, Housing Development Finance Corporation, to enable HDFC to maintain its shareholding in the bank.
On Saturday, the boards had approved in-principle a merger between the two banks.
Meanwhile, the broader market was also under pressure. Bombay Stock Exchange's Sensex was down 0.74 per cent or 127 points at 17,221.23 while National Stock Exchange's Nifty slipped 0.65 per cent or 33 points to 5077.50.
At 11 am, BSE Bankex, the biggest sector loser, fell 2.71 per cent to 9,874.88. Centurion Bank of Punjab (down 9.93%), Bank of India (4.43%), HDFC Bank (4.41%), Axis Bank (2.85%) and State Bank of India (2.02%) were under pressure.
HDFC Bank approved the share swap ratio for the proposed merger of Centurion Bank of Punjab at 1:29, that is one share (Rs 10 each) of HDFC Bank for every 29 shares (Re 1 each) held in Centurion Bank of Punjab.
The market was expecting a swap ratio of 1:20.
The bank's board will meet on Feb 28 again on the merger, wherein it will also consider a preferential offer to its parent, Housing Development Finance Corporation, to enable HDFC to maintain its shareholding in the bank.
On Saturday, the boards had approved in-principle a merger between the two banks.
Meanwhile, the broader market was also under pressure. Bombay Stock Exchange's Sensex was down 0.74 per cent or 127 points at 17,221.23 while National Stock Exchange's Nifty slipped 0.65 per cent or 33 points to 5077.50.
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