BEIJING - Shenzhen Development Bank Co (SDB) said Thursday that it has gained approval from China's Banking Regulatory Commission (CBRC) to absorb Ping An Bank, the banking unit of the country's second-largest insurer Ping An Insurance Group.

The two parts have yet to undergo a string of legal procedures to accomplish the deal, before which they will still retain independent legal status to serve their customers.

Upon completion of the merger, the legal status of Ping An Bank will be terminated and its branches will be put under the SDB, the statement said.

Shareholders of SDB had agreed to name the combined bank as Ping An Bank Ltd Co, according to the statement.

Ping An Group's plan to integrate the Ping An Bank and the SDB has been unfolding in steps.

Share swaps conducted last year have allowed the insurer to become the SDB's controlling shareholder with a 52.38 percent stake, while Ping An Bank has been turned into the SDB's subsidiary as the SDB holds 90.75 percent stake in it.