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Centurion Bank of Punjab, LKB to pursue merger

Special Correspondent

Both boards will meet on September 4

MUMBAI: The boards of directors of Centurion Bank of Punjab Limited and Lord Krishna Bank Limited on Saturday considered, in-principle, a merger of the two banks.

The 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 Reserve bank of India (RBI), the stock exchanges, and the respective Boards and shareholders of both banks, a press release issued jointly by the two banks said.

Shailendra Bhandari, Managing Director and CEO, Centurion Bank of Punjab said, "Growing by inorganic means is an important component of our strategy;the proposed merger with Lord Krishna Bank will further improve our franchise and customer proposition across the country, particularly in North India, Karnataka, Kerala, and Maharashtra.''

"We have been evaluating various options to create value for our stakeholders as well as employees, and felt that the proposed merger was the preferred option.

"It is a synergistic fit in terms of product offerings and geographical coverage.

"The proposed merger will add value to stakeholders in addition to providing modern banking services to customers,'' said B. Swaminathan, Managing Director, Lord Krishna Bank.

The boards of both banks will meet again on September 4 to consider the final terms of the merger.

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