India HDFC Bank to take over Centurion Bank-report

MUMBAI, Feb 22 (Reuters) - India's HDFC Bank Ltd (HDBK.BO: Quote, Profile, Research, Stock Buzz) is set to take over smaller rival Centurion Bank of Punjab CENB.BO in an all-stock deal worth more than 100 billion rupees ($2.5 billion), the Economic Times said on Friday in an unsourced report.

The Economic Times said the deal may value shares in Centurion Bank at 57 rupees per share, or roughly the price at which the shares closed on Thursday after having jumped 14 percent on the day, when speculation of such a deal intensified.

On Thursday, in a notice to the stock exchange due to a media report of merger talks, HDFC Bank said, "presently there is no such proposal for the consideration of the board of directors".

Centurion Bank, in a notice to the exchange on Thursday, said it did not comment on speculative reports.

Officials from both banks had met with a leading investment banker and the boards of the two banks were likely to meet on Saturday to consider the merger proposal, the Economic Times said.

The Financial Express paper on Friday cited an unnamed top Centurion Bank official as saying the bank was "open to mergers and acquisitions in order to expand its horizon".

Last week the Economic Times had said Centurion Bank was in merger talks with ICICI Bank (ICBK.BO: Quote, Profile, Research, Stock Buzz), HDFC Bank and Infrastructure Development Finance Co (IDFC.BO: Quote, Profile, Research, Stock Buzz).

At that time, a Centurion Bank spokesman had denied the report. ($1=39.9 rupees) (Reporting by Rina Chandran; Editing by John Mair)