Integration to be smooth: Aditya Puri

HDFC Bank, the 2nd biggest private sector depository financial institution in the country, is all set to absorb Centurion Depository Financial Institution of Punjab (CBoP), the new coevals private sector bank. This volition be HDFC Bank's 2nd acquisition after Times Bank.

HDFC Depository Financial Institution Managing Director and Head Executive Military Officer Aditya Puri said in an interview to Business Standard that the integrating would be over in five-seven months. Excerpts from the interview:

What prompted the merger?

We have got always been looking out for the right opportunity. We wanted to purchase an physical thing that would give us the marketplace share, the right people, cost efficiencies and also value for the shareholders. CBoP was the right pick and the matrimony happened.

What are the synergisms with CBoP?

CBoP subdivision web is an plus for HDFC Bank. The concerted physical thing will have got a web of 1148 branches. On the concern front, they are very aggressive in the little and medium endeavors sector. This is in keeping with our strategy. They have got seen a 60 per cent growing in the SME business.

As a concerted entity, we will be able to capture this concern better. CBoP is not present in the crdit card space, and hence, HDFC Depository Financial Institution will be able to offer its recognition card to all the existent CBoP customers.

They are not large in the auto loans and dealing banking business. HDFC Depository Financial Institution is not large in Canada but they have got a necktie up with Horse Opera Union for the remittal business. There is no overlap in concern segments, hence this is an ideal marriage.

Will there be any cost efficiencies?

CBoP have been grappling with a high cost-to-revenue ratio. With HDFC Bank's scale of measurement coming into the picture, this should be sorted out. The CASA (current business relationship and economy account) ratio should also better at CBoP subdivisions to be in melody with that of HDFC Bank, which will convey the cost of finances down.

Will there be any subdivision rationalisation?

There will be no major break in footing of subdivisions as they will compliment our concern and also assist us in our agribusiness business. The strong web (of CBoP) in the South will assist us in fiscal inclusion.

How will the people integrating work out?

We are growing at 40 per cent and at this growing charge per unit we will necessitate people. There will be no lay-offs. In fact, we add new people every year. The integrating of the 2nd rung functionaries should be smooth as there is hardly any overlap.