HDFC and CBOP banks merger

HDFC Bank is set to merge CBOP (erstwhile troubled Centurion Bank, which merged with Bank of Punjab) with itself. Usually in a merger of unequals, the smaller bank (CBOP) benefits more. This is easily reflected in the stock markets reaction to the news. HDFC Bank share price fell from (1540 to about 1450) while CBOP share price increased (from 50 to 60). I feel that besides the synergies identified like size and reach, HDFC Bank is also set to gain quite a lot from the expertise of Rana Talwar of Sabre Capital who will join the Board of HDFC Bank. Rana Talwar has a lot of international experience by working with Citibank and heading Stanchart. The exchange rate of 1:29 values the share of CBOP at about 50 and that is where the stock trades currently.