The Reserve Bank of India (RBI) has approved the merger of Centurion Bank of Punjab and Lord Krishna Bank with effect from August 29. Centurion Bank of Punjab has a registered office and after the merger all the branches of Lord Krishna Bank will function as branches of Centurion Bank of Punjab.
CBP and LKB sources told FE on Wwdnesday that “with the RBI’s approval, all requisite statutory and regulatory approvals for the merger have been obtained”. The merger of the two banks will result in the creation of a leading private sector bank in the country with a nation-wide presence of over 400 branches and 450 ATMs. The combined bank with its in-depth coverage in Punjab, National Capital Region and Kerala will serve about 4 million customers and focus on its strengths in the retail, small and medium enterprises (SME), agriculture and NRI segments.
Earlier, LKB and CBP had met a road block in view of opposition from All India Bank Officers Confederation and a petition was filed by the stockholders of LKB. In the aftermath of the opposition and the petition, the RBI had withheld its approval that is mandatory for the merger.
Centurion Bank of Punjab sources said that the merger would mean that the new entity would emerge stronger in retail segment, SME, NRI accounts and broad based penetration. It will have a deposit base of Rs 12,650 crore and a loan book of Rs 8,873 crore.
Centurion Bank of Punjab has leadership in the two-wheeler and commercial vehicle loan segments, and is a strong player in foreign exchange services, personal loans, mortgages, educational loans and agricultural loans and credit cards services.