Centurion Bank of Punjab Blog

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

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.