|
Centurion
Bank to acquire Lord Krishna Bank
19
August 2006
 Mumbai:
Centurion Bank of Punjab Ltd. is acquiring privately
held Lord Krishna Bank in an all-stock deal. The boards
have approved an `in-principle' merger the two banks.
The merger, however, will be subject to satisfactory due
diligence, a fair share-swap ratio as also the requisite
statutory, regulatory and corporate approvals, including
those from the RBI, the stock exchanges, and shareholders
of both the banks.
"We
are extremely pleased to receive the go-ahead from our
board to pursue this opportunity. Growing by inorganic
means is an important component of our strategy. The proposed
merger with Lord Krishna Bank would further improve our
franchise and customer proposition across the country,
particularly in northern India, Karnataka, Kerala, and
Maharashtra. Having successfully completed the integration
process of Bank of Punjab with the erstwhile Centurion
Bank we believe we are uniquely placed to tap the synergies
that exist between Lord Krishna Bank and ourselves,"
Shailendra Bhandari, managing director and CEO, Centurion
Bank of Punjab, said.
The
combined entity would have a network of 361 branches and
12 extension counters nationwide, with an extensive and
in-depth coverage in Kerala and Punjab. Centurion Bank
of Punjab has received approval from the Reserve Bank
of India to open a further 30 branches in the current
fiscal.
"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 would add value to stakeholders in
addition to providing modern banking services to customers.
We are very optimistic about the future prospects of the
combined entity," said B. Swaminathan, managing director,
Lord Krishna Bank.
Centurion
Bank of Punjab had a deposit base of Rs10,372.1 crore
and net advances of Rs7,452.4 crore as of June 30, 2006.
Lord
Krishna Bank had a deposit base of Rs2,278.9 crore and
net advances of Rs1,420.9 crore as of March 31, 2006.
Ambit
Corporate Finance and DSP Merrill Lynch are the  advisors
for the merger while Deloitte Haskins & Sells and
N M Raiji & Co. are the independent valuers appointed
jointly by the banks to determine the share swap ratio.
The
boards will meet again on September 4 consider the final
terms of the merger.
Other
reports on Centurion Bank
Other
reports on Lord Krishna Bank
General
reports on banks
| 
