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.