CBoP expects LKB merger in current quarter

Centurion Bank of Punjab on Thursday said it expects the merger of Lord Krishna Bank with it to take place during the current quarter.

The boards and shareholders of both the banks had approved the merger and RBI approval was awaited, Centurion Bank of Punjab CEO and Managing Director Shailendra Bhandari told reporters here.

He said RBI was awaiting for the verdict of the Kerala High Court, where a former employee of Lord Krishna Bank had made a plea relating to audit of the bank's books.

Bhandari said there would be no lay-offs or closure of branches after the merger of LKB, which has a strong presence in Kerala, with 70 of its 124 branches located there.

Post merger, Centurion Bank of Punjab would become a national bank with presence both in the north as well as in the south, he said.

Bhandari said an in-principle approval had been received for setting up of a Asset Reconstruction Company, in which Centurion would have 30 per cent stake.

Centurion Bank of Punjab is a private sector bank that was formed by the merger of Centurion Bank and Bank of Punjab. The bank focuses on retail and SME businesses.