HDFC Bank, Times Bank boards approve merger
Mumbai: The deal that is to create the country’s largest new generation private bank has been inked. The Boards of HDFC Bank and Times Bank have approved the proposed merger and shareholders of Times Bank will get one HDFC Bank share for every 5.75 shares they hold. The amalgamation is to be effective from 1 December. HDFC Bank is to make a preferential allotment of 19.8 million shares to its promoters, HDFC and the Chase group, in order to protect their respective stakes following the merger. Bennett, Coleman & co, the promoters of Times Bank, will be allotted 1.739 crore HDFC Bank shares of Rs 10 each and other shareholders 0.609 crore shares.

The planned merger is the first of its kind in the country. HDFC Bank and Times Bank will seek the approval of their shareholders at extraordinary general meetings on 1 and 7 January 2000 respectively.

Deepak Parekh, chairman of HDFC Bank, said the bank is paying around 11 per cent premium to the market price of the Times Bank shares for the acquisition.

HDFC Bank at the end of the last financial year, had a total deposit base of Rs 2,915 crore and total net advances of Rs 1,401 crore. It has 57 branches. Times Bank had a total deposit base of Rs 3,011 crore of which retail deposits accounted for Rs 1,532 crore and corporate deposits Rs 1,479 crore. The bank has a network of 35 branches.
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Gold scheme to have differential interests
Mumbai: State Bank of India is ready to offer differential rates of interest on gold deposits over 10 kg. The bank’s chairman G.G. Vaidya said the differential rates will be over and above the rates announced in the scheme and will depend on the amount, form and tenor of the deposit. The bank is to set up a separate unit, SBI Gold and Precious Metals, to assay the gold and jewellery brought in as deposits. Besides the State Bank, which will retain 51 per cent stake in the Rs 15-crore joint venture company, three banks, Allahabad Bank, Canara Bank and Credit Suisse Financial Products, will be stakeholders.

Mr Vaidya said at the launch of the scheme in Mumbai that the bank has already collected close to 400 kg of gold within the first few days of its launch.

The bank will consider extending the scheme to non-resident Indians and the matter will be discussed with the finance ministry.
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New trading finance scheme from Allahabad Bank
Calcutta: Allahabad Bank is launching a new trading finance scheme to help its merchant banking segment to grow. The scheme is to be implemented through 30 select branches of the bank. The bank hopes that it will attract potential customers like wholesalers and retailers dealing in commodity trading, white goods and automobiles.
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Hudco loan for Bangalore airport
Bangalore: Housing and Urban Development Corporation has agreed to extend a Rs 125 crore term loan for the Devanahalli international airport at Bangalore. The term loan is to be used for acquisition of land for the project. The sanction gives the Karnataka government a second option to fund the project. The state government has been toying with the idea of raising funds through the infrastructure bond route. The term loan of Hudco was found to be relatively cheap and the state government may opt for this route.
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