Centurion Bank of Punjab Blog

Unofficial Centurion Bank of Punjab Blog. The information provided in this blog may or may not be correct.

Monday, October 15, 2007

Centurion Bank of Punjab allots shares on conversion of warrants

Centurion Bank of Punjab Ltd has informed the BSE that the Securities Transfer, Allotment and Grievance Redressal Committee of the Board at a meeting on October 9 allotted 5,08,000 equity shares on conversion of warrants.

The warrants were issued in terms of the Scheme of Arrangement among Bank Muscat SAOG, the Bank of Punjab Ltd (formerly known as Centurion Bank Ltd) and shareholders of Centurion Bank of Punjab Ltd pursuant to Sections 391 to 394 of the Companies Act, 19 56, which was duly approved by the shareholders, the High Courts of Mumbai (Goa Bench) and Karnataka as well as by the Reserve Bank of India.

Saturday, September 22, 2007

CBoP to raise Rs500cr via pvt equity placement

In order to meet capital adequacy norms under Basel II and to support business growth, Centurion Bank of Punjab (CBoP) will raise Rs 500 crore of equity capital by issuing equity shares to institutional investors.

The bank will be issuing 12.26 crore equity shares of Re 1/- each at an issue price of Rs 40.75 per equity share aggregating Rs 499.99 crore. The issue price is above the floor price of Rs 40.34 per share. Kotak Mahindra Capital, Deutsche Equities India and SSKI Corporate Finance acted as the Global Joint Coordinators for this Issue.

The bid closing date pursuant to the proposed placement of equity shares of the bank was September 20, 2007.

At the end of the June 2007, the capital adequacy ratio was 10.97%.

Saturday, September 15, 2007

CBoP to increase directors on board to 15

Private sector lender Centurion Bank of Punjab (CBoP) on Wednesday said that the bank has received the approval from the RBI to increase the maximum permissible number of directors to 15.

In a communique to the BSE, the bank said by amending Article 95 of the Articles of Association, the bank could raise the number of directors from 12 to 15.

Last month, the RBI cleared the scheme of amalgamation of Lord Krishna Bank with CBoP. The merger came into effect on August 29. Under the scheme of amalgamation, CBoP will issue up to 13.22 crore shares of Re 1 each to the shareholders of Lord Krishna Bank in the ratio of seven shares for every five held.

Monday, September 10, 2007

Centurion Bank of Punjab allots equity shares pursuant to merger of Lord Krishna Bank

Centurion Bank of Punjab Ltd has announced that the Securities Transfer, Allotment & Grievance Redressal Committee of the Board, (a Committee duly authorized in this behalf) at its meeting held on September 10, 2007, has allotted 13,21,34,701 equity shares of Re 1/- each of the Bank ("Transferee Bank") to the shareholders of Lord Krishna Bank Ltd ("Transferor Bank") whose names were recorded in their Register of Members on the Record Date.

The equity shares were allotted in the ratio of 7 equity shares of Re 1/- each of the Transferee Bank for every 5 equity shares of Rs 10/- each held by the shareholders in the Transferor Bank as per the Scheme of Amalgamation duly sanctioned by the Reserve Bank of India in terms of Section 44A of the Banking Regulation Act, 1949.

Centurion BoP targets aggressive growth in Kerala

Centurion Bank of Punjab, one of the leading new generation private sector banks in the country, reiterated its commitment to the State of Kerala, following the successful merger with Lord Krishna Bank (LKB). The combined bank, which will continue to be called Centurion Bank of Punjab, will leverage the large branch network in Kerala to launch compelling new products targeted at the emerging needs of the customers across the State.

This merger has further strengthened the geographical reach of Centurion Bank of Punjab in major towns and cities across the country, especially in the State of Kerala, in addition to its existing dominance in the northern part of the country. Centurion Bank of Punjab is planning to build upon the strong brand attributes of both banks in their respective geographies. In Kerala, the Bank will now have a powerful network, which includes 92 branches and extension counters, 8 marketing offices, 24 ATMs and about 300,000 customers, supported by over 950 employees. The combined entity has a balance sheet size of around Rs. 23,000 crores, with deposits of approximately Rs. 18,000 crores, net advances of approximately Rs. 13,000 crores and total business of approximately Rs. 31,000 crores.

The customers of the erstwhile Lord Krishna Bank will now have access to over 400 branches and extension counters and 450 ATMs in approximately 180 locations across the country, supported by over 7,500 employees. They will also benefit from the Bank’s state-of-the-art technology architecture that provides easy access and superior customer service, and can avail of a complete suite of financial products and services including Wealth Management, Liabilities, Assets and Foreign Exchange Services.

Speaking on the occasion, Mr. Shailendra Bhandari, Managing Director and CEO, Centurion Bank of Punjab said, “We are delighted that this merger has given us a significant presence in Kerala. We will leverage the synergies created by this merger and offer the finest banking products to the people of the State of Kerala. At the same time we will continue our focus on accelerated growth in other geographies where we are dominant. We are committed to create a world class new generation private sector Bank with a pan India presence.”

With its in-depth coverage in Kerala, Punjab and Delhi NCR, Centurion Bank of Punjab will serve about 4 million customers and focus on its strengths in the retail, SME, agricultural and NRI segments.

Sunday, September 02, 2007

Centurion Bank launches 'SmartRemit-Gulf'

Centurion Bank of Punjab (CBoP) today launched a 'SmartRemit - Gulf', a service to help NRI clients based in UAE to remit funds to their accounts with the Bank.

For this, the bank has entered into a Remittance Agreement with exchange houses in the UAE such as UAE Exchange Centre LLC and Alukkas Exchange.

It facilitates NRI clients of CBoP to remit funds from any branch of these exchange houses based anywhere in the UAE to their accounts with any branch of CBoP across India within one working day, said a company statement.

Additionally, NRIs could also utilise this channel to remit funds to the accounts of their family members maintained with any branch of CBoP across India.

They can even remit funds through this mode, for placing under NRE / FCNR Deposits with the bank, statement said.

RBI approves merger of Lord Krishna Bank with Centurion Bank

Reserve Bank of India has approved the scheme of amalgamation of Lord Krishna Bank with Centurion Bank of Punjab. The merger is effective August 29, 2007.

Under the scheme of amalgamation, Centurion Bank of Punjab will issue up to 13.22 crore shares of Re 1 each to the shareholders of Lord Krishna Bank in the ratio of seven shares for every five held.

The Kerala High Court last week paved the way for the merger after it dismissed a petition by an LKB shareholder, ruling that there was no reason for ordering a probe by the government or any of its agencies into the affairs of the bank.

The shareholder, Umesh Kumar Pai, had filed a petition against LKB’s decisions at the annual general meeting on September 30, 2006 and sought an investigation into the bank’s affairs.

Saturday, September 23, 2006

Lord Krishna Bank merges with Centurion Bank of Punjab

The board of directors of Centurion Bank of Punjab, a leading private sector bank in India and Lord Krishna Bank, headquartered at Cochin, has approved the merger of Lord Krishna Bank with Centurion Bank of Punjab.

The share swap ratio has been fixed at 5:7 that is for every 5 share of Lord Krishna Bank. Its shareholders will receive 7 shares of Centurion Bank of Punjab.

Rana Talwar will be the chairman and Shailendra Bhandari, the chief managing director and chief executive officer of the merged entity. As part of the integration of both banks, it is envisaged that there will be no retrenchment of staff of either bank and there will no closure of any rural branches. Moreover, the scheme of amalgamation provides one time increment to all employees of Lord Krishna Bank.

The board of directors of Centurion Bank of Punjab also approved a proposal to raise additional capital through a preferential issue of fresh equity. Upto 75 million fully paid up equity shares at a price of Rs 24.54 per equity share for a consideration of upto 1,840.5 million to India Advantage Fund V.

Also, 95 million fully paid up equity shares at a price not exceeding Rs 25 per equity share for a consideration of upto Rs 2375 million to Bank Muscat (S.A.O.G).

The proposal is subject to all the requisite statutory, regulatory and shareholders approval including the approval of RBI.

Ambit Corporate Finance and DSP Merrill Lynch are the advisors to Centurion Bank of Punjab and Lord Krishna Bank respectively.

Friday, February 10, 2006

Centurion Bank joins hand with IIL

Centurion Bank of Punjab has tied up with IL&FS Investsmart Ltd (IIL) for offering equity broking services to the bank's customers. This will provide customers seamless settlement of trade and funds for all their equity transactions done through the IL&FS platform. The MoU between Centurion Bank of Punjab and IIL is a referral arrangement. The customer can receive the settlement of securities and funds and trade in BSE, NSE and derivatives from a single window. The shares will also be automatically delivered from and into the bank's demat account while the sale proceeds will be credited to the account on settlement dates.

The registration charges for `Smart invest (for occasional traders)' is Rs 500 while for `Smart trade (for active traders)' it is Rs 1,000. The brokerage charges are 0.5 per cent for delivery and trade while it is 0.10 per cent for derivatives and intra-day trading. IIL will also offer portfolio management services and online/offline equity broking services to the bank's customers in the first phase.

CboP to unveil credit card facility soon

Centurion Bank of Punjab said that it will launch a credit card facility in the next couple of months. The bank would come out with the offering of credit cards before the end of this fiscal. Bank will soon launch credit cards which can be in the form of a joint venture or through outsourcing its processing or through a `White Label'. The bank will also come out with online IPO serivces within two months. Notably, the bank, result of the merger of Centurion Bank with Bank of Punjab on October 1, 2005, posted a net profit of Rs 23.27 crore, up by 227.7 per cent for the quarter ended December 31, 2005. Its capital adequecy ratio is 10.2 per cent. The MoU with IL&FS Investsmart Limited will help the bank customers seamless settlement of trade and funds for all their equity transactions done through IL&FS platform.

CBoP likely to float public issue this year

Centurion Bank of Punjab's (CBoP) proposed public issue, via which it aims to raise over Rs 400 crore, is likely in early 2006-07, as it sees its capital adequacy reaching comfortable levels with the Rs 384 crore preferential allotment.The bank is making preferential allotment of shares to India Value Fund, managed by GW Capital (Rs 134.75 crore), ChrysCapital III Llc (Rs 134.75 crore) and Citigroup Venture Capital (Rs 113.57 crore). It will seek shareholders nod for the preferential allotment and the proposed public offering later this month.The infusion of additional capital from the preferential allotment will increase the bank's tier-I capital adequacy to about 15 per cent. It also has tier-II capital adequacy of another 2.5 per cent. The bank will have more than comfortable capital for the current financial year. After the preferential allotment, the total foreign holding in the bank will increase to 67 per cent. The bank is yet to decide whether the public issue of shares will be in the domestic market or an ADS offering.The additional capital is being raised to support organic and inorganic growth. The bank will not require fresh capital to meet Basel II norms. It is looking to maintain capital adequacy above 11-12 per cent at all times and the bank submitted its annual branch rollout plan to the Reserve Bank of India last month and is likely to get approvals by the end of this month. At present, CBOP has 240 branches and extension counters and 386 ATMs.

History of the Company

1994

- The company was incorporated on 30th June, and the certificate of Commencement of Business on July 20th. It is promoted as a joint venture between 20th Century Finance Corporation Ltd, and its associates and Keppel Group of Singapore. It has got a network of ten branches.

- The main equity of the Bank was provided by the promoters, 20th Century Finance Corporation Ltd. & its associates and Keppel Bank of Singapore (now Keppel TatLee Bank Ltd.) through Kephinance Investment (Mauritius) Pte. Ltd.

1995

- 20th Century Finance Corporation Limited, has been amalgamated with Centurion Bank Limited.

- The Bank, set up in a fully computerised environment with ATM facility at every branch and Computer networking between branches can indeed claim to be a `Bank with a difference'.

- The Bank has introduced, for the first time in the country, the concept of `anywhere banking' which enables to operate the account from any other branch of the Bank.

1996

- During the year under review the Bank made an issue of 22,50,000 Equity Shares to the shareholders of promoter company and allotted 9,42,50,000 Equity Shares to the promoters as well as others including Keppel Group, International Finance Corporation and Asian Development Bank out of the application money which had already been received by the Bank.

- New branches were opened at Chennai, Bangalore, Chandigarh, Cochin, Calcutta and Delhi; the number of branches in operation increased from 4 to 10.

- The Bank has been providing financial assistance by way of leasing and direct loans to units engaged in generating non-conventional energy as well as in conservation of energy.

1997

- The Bank proposes to set up 15 more branches, to expand its network to 35 branches.

- The Centurion Bank Ltd, one of the fastest growing new generation private sector banks in the country, is all set to enhance its presence in Kerala.

- During the year, the bank was awarded the highest safety A1 rating by the Industrial Credit Rating Agency.

- Centurion Bank Ltd proposes to open 10 more branches by December. The bank currently has 20 branches and its plans to expand its network to all the major cities in the country.

1998

- Centurion Bank Ltd proposes to be the first bank to offer Internet banking in its true sense.

- The company also recently spun off its Car finance division into a 49:51 joint venture with General Motors Acceptance Corporation (GMAc), one of the largest auto finance companies in the world.

1999

- TCFC Finance Limited has entered into a Finance Support Agreement dated April 8th, and Supplement Agreement dated April 9th, with Centurion Bank Ltd. agreeing to provide financial support over a period of six years.

- The Bank is linked to the Society for Worldwide Interbank Financial Telecommunication (SWIFT) network enabling it to transmit worldwide the financial messages instantly. The Bank will also continue to focus on trade financing, both domestic and international, as a niche-market product.

- Centurion Bank, with the Keppel association, has the distinct advantage of being able to offer the latest in International Banking Services as well as leads on business opportunities available overseas for corporate clients.

- The Bank is also proposing to install software whereby the ATMs can be a part of a shared network through tie-ups with other ATM card issuers as well as credit card issuers.

- The Bank has a diversified loan portfolio managed by personnel with experience in the Banking industry. - The Company's public issue on 20th September, of 3,3750,000 Equity Shares of Rs. 10/- each at par aggregating Rs. 33.75 crores.

- Centurion Bank, meanwhile, has introduced the `single cheque book' facility for its current account holders.

- Centurion Bank Ltd (CBL) has appointed PricewaterhouseCo-opers (PWC) to undertake an `integration audit' of its operations.

- Leading private sector bank, Centurion Bank, has introduced floating interest rate term deposits for the first time in India.

- Centurion Bank and Canada Life Assurance have entered into a tie-up to offer insurance products in the country.

- JM Mutual Fund has entered into a non-exclusive tie-up with Centurion Bank for marketing its schemes.

- Centurion Bank has launched a cash management product - Cash and Transaction Services (CATS) to provide a single window facility to its clients for all their receivables requirements.

2000

- Centurion Bank and Logica Plc of the UK signed a strategic technology alliance, whereby the bank launches a series of new electronic banking products.

- The Bank has opened a new branch with online ATM connectivity at Vellore in Tamil Nadu.

- Mr. M.G. Subbaiah, Senior General Manager, ICICI Ltd, is to join Centurion Bank as Managing Director.

- The Company has signed a deal with Geojit Securities to provide payment gateway for Internet trading.

- The Bank has set up a capital markets division to offer clearing services to leading stock exchanges and offering specialised services to market intermediaries.

- The Board has approved to raise the additional capital by way of a rights issue in the ratio of seven equity shares for every 10 equity shares held at a premium of Rs 2 per share and ESOPS up to Rs 10 crore.

- The Company additional capital by way of a rights issue in the ratio of seven equity shares for every 10 equity shares held at a premium of Rs. 2 per share and has also approved the employee stock option scheme up to Rs. 10 crores for which a compensation committee has been constituted to finalise the scheme.

- Centurion Bank opened a full-fledged branch in Hubli, Karnataka.

- The Company proposed to issue 10,67,29,134 No. of equity shares of Rs 10 each at a premium of Rs 2 per share to the equity shareholders of the company on rights basis in the ratio of seven equity shares for every 10 equity shares.

- Centurion Bank has launched its global debit card -- "Vantage-24" in a tie-up with MasterCard International.

2001

- The Centurion Bank has tied up with the Indian Banks Association's (IBA) shared payment network scheme, known as a Swadhan ATM Network.

- Centurion Bank has tied up with the Indian Bank Association's shared payment network scheme, the `Swadhan ATM Network'.

- Centurion Bank is issuing 10,67,29,134 No. of equity shares of Rs 10 each at a prmeium of Rs 2 on rights basis to boost its capital base.

- Mr. M.J. Subbaiah has resigned as Managing Director of Centurion Bank with effect from March 31.

- Centurion Bank has slipped into the red. Total income for the quarter fell 11.40 per cent to Rs 158.78 crore as against Rs 179.22 crore earlier.

2002

-Mr Janakiraman assumes the charge as the Chairman and MD of the bank.

- Mr. Frank Polman, Nominee of Asian Development Bank (ADB) gives resignation from the Board of the bank and is replaced by Mr. Jayant Dang, who is Alternate Director to Mr. Polman. ADB has appointed Mr. Davendra Mittal as Alternate Director to Mr. Dang.

-Bank Muscat and AIG Indian Sectoral Fund complete their due deligence in the bank

-Mr Roy Karoaglan resigns as Nominee from IFC from the directorship of the company.

-Closes down the capital market branch in the Fort area and converts it into a regular branch.

-Introduced 'MYCBOL' , an international banking service, which is availabe free at www.centurionbank.com

-Receives extension of three months from RBI to publish its annual reports.

-Enters into a deal with eSeva of Andhra Pradesh Government to enable its customers make payment of utility bills online.

-Rana Talwar bids for centurion bank through sabre capital worldwide marks the resurgence of the banker-entrepreneur.

2003

-Rana Talwar's Sabre Capital worldwide completed its due deligence exercise on the bank. It ties up with CDC fund and Chrysalis capital to introduce formal bid for centurion bank.

-Mr V Janakiraman re-appointed as the CMD of the bank.

-Asian Development Bank team approaches RBI to recast the equity structure of the bank.

-Launches mobile phone based 'SMS Alerts' a value added premium service.

-Revises the capital restructuring plan by which the existing paid up capital of Rs.1524.7 million would be reduced to Rs.152.47 million.

-Proposes Rs.65cr rights-cum-public issue to hit the market by third quarter in the year.

-Receives in-principle approval of RBI to restructure the equity fund of the bank.

-IFC brings down its equity share in the bank from 8.6% to 2.72% .

-Bombay high court approves for the scheme of amalgamation filed with the court for restructuring and recapitalisation of the bank.

-Introduced 'online railway ticket booking service' for its Kerala customers.

-Ties up with the Indian Navy to disburse salary on behalf of the naval staff across the country.

-Karnataka High court approves for the merger of Bank Muscat with Centurion Bank.

2004

-Centurion Bank inducts Morgan for rights issue

-Mr Shailendra Bhandari appointed as Managing Director

-Centurion Bank Ltd has informed that Mr. Shailendra Bhandari has assumed charge as Managing Director of the Bank w.e.f. February 1, 2004.

Accordingly, the tenure of Mr.V. Jankiraman as Chairman and Managing Director has ended on January 31, 2004 on Mr. Shalendra Bhandari assuming charge as Managing Director.

-Kephinance Investment [Mauritius] Pte Limited has informed that they have acquired 28,030,000 shares amounting to 4.94% of the total paid up capital of Centurion Bank Limited

-Centurion forges alliance with BankMuscat to offer foreign currency products

-Centurion Bank has inked a pact with Bajaj Allianz Life Insurance Company to distribute the latter's bancassurance products through branches in the country as part of plans to grow fee-based income

2005

-Centurion Bank forges alliance with Euronet

-Boards of Directors of Centurion Bank and Bank of Punjab Ltd on June 29, 2005 approves merger of two banks. The combined bank will be called Centurion Bank of Punjab