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.
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