As part of the amalgamation process, Centurion Bank of Punjab will follow a ratio of seven shares for every five held and will issue up to 13.22 crore shares, The Economic Times revealed. Once the deal is complete, all of the branches of Lord Krishna Bank will operate as branches of Centurion Bank of Punjab, reported Banknet India.
According to media releases, the approval from the Reserve Bank of India (RBI) followed the dismissal of a petition filed against the merger by a Lord Krishna Bank shareholder, Umesh Kumar Pai, which called for an investigation into the bank’s affairs.
According to Banknet India, the transaction will add 112 branches to Centurion Bank of Punjab’s current 279 branches. The publication added that the bank is planning to establish a further 200 branches by December 2007.
