HDFC Bank, CBoP to pursue merger

Mumbai, February 23, 2008: The Boards of HDFC Bank and Centurion Bank of Punjab (CBoP) met today to consider, in-principle, a merger between the two banks.

The two Boards have resolved to pursue the merger subject to satisfactory due diligence, a fair share-swap ratio and all the requisite statutory, regulatory and corporate approvals, including those from the RBI, the stock exchanges, and the respective Boards & shareholders of both Banks.

The Boards of both banks will meet on February 25, 2008 to consider the swap ratio after receipt of the valuation reports; and on February 28, 2008 to consider the draft scheme of amalgamation and any other matters as required.

ABOUT HDFC BANK

Promoted in 1995 by Housing Development Finance Corporation (HDFC), India's leading housing finance company, HDFC Bank is one of India's premier banks providing a wide range of financial products and services to its over 10 million customers across hundreds of Indian cities using multiple distribution channels including a pan-India network of branches, ATMs,

phone banking, net banking and mobile banking. Within a relatively short span of time, the bank has emerged as a leading player in retail banking, wholesale banking, and treasury operations, its three principal business segments.

The bank's competitive strength clearly lies in the use of technology and the ability to deliver world-class service with rapid response time. Over the last 10 years, the bank has successfully gained market share in its target customer franchises while maintaining healthy profitability and asset quality.

As on December 31, 2007, the Bank had a network of 754 branches and 1,906 ATMs in 327 towns/cities. For the quarter ended December 31, 2007, the bank reported a net profit of

INR 4.29 billion (Rs.429.4 crore), up 45.2%, over the corresponding quarter of previous year. Total deposits were INR 993.9 billion (Rs 99,387 crore), over 48.9% higher. Total balance sheet size too grew by 47% to INR1314.39 billion (Rs. 131,439 crore.

For more information log on to: www.hdfcbank.com

About Centurion Bank of Punjab:

Centurion Bank of Punjab is one of the leading new generation private sector banks in India. The bank serves individual consumers, small and medium businesses and large corporations with a full range of financial products and services for investing, lending and advice on financial planning. The bank offers its customers an array of wealth management

products such as mutual funds, life and general insurance and has established a leadership 'position'. The bank is also a strong player in foreign exchange services, personal loans, mortgages and agricultural loans. Additionally the bank offers a full suite of NRI banking products to overseas Indians.

On 29th August 2007, Centurion Bank of Punjab merged with Lord Krishna Bank (LKB), post obtaining all requisite statutory and regulatory approvals. This merger has further strengthened the geographical reach of the Bank in major towns and cities across the country, especially in the State of Kerala, in addition to its existing dominance in the northern part of the country.

Centurion Bank of Punjab now operates on a strong nationwide franchise of 394 branches and 452 ATMs in 180 locations across the country, supported by employee base of over 7,500 employees. In addition to being listed on the major Indian stock exchanges, the Bank's shares are also listed on the Luxembourg Stock Exchange. For more information log on to www.centurionbop.co.in