Centurion Bank to open 30 branches in Punjab

The Centurion Bank of Punjab, a leading retail bank, is planning to add 30 branches. The bank will have 403 branches in the country after its amalgamation with the Lord Krishna Bank, which is expected early next year. It is awaiting approval from the Reserve Bank of India.

This will include 249 existing branches, 30 proposed branches and 124 branches and extension counters of Lord Krishna Bank.

Talking to Business Standard, the managing director and chief executive officer of the Centurion Bank, Shailendra Bhandari, said the merger of the Bank of Punjab with the Centurion Bank helped the two entities tide over the problem of non-performing assets (NPAs).

The bank registered an NPA level of 1.3 per cent in September, which was half the non-performing assets in the corresponding period last year.

"We have a strong presence in Punjab, with a network of 70 branches, and will replicate the same in Kerala after merging with the Lord Krishna Bank," he added.

The bank has rolled out its sophisticated service 'Elite' in Chandigarh for high-end users, which will include investment advisory services extended by relationship managers. 'Elite' has been launched in Mumbai, Bangalore and Delhi before Chandigarh and will be rolled out in other metros subsequently.

Though NRI remittances constitute an important part in the bank's funds, the bank as of now is not expanding in the global market. It plans to consolidate in the domestic market.

The Bank of Muscat has a 20 per cent stake in the Centurion Bank of Punjab and the representatives of the bank are present in Oman and the UAE.

"We can mobilise the funds of Indian NRIs based in Gulf through this channel, especially for the branches located in the catchment area in Kerela, which would come under our fold after synergy with Lord Krishna Bank," said Bhandari.

The bank's business volume stood at Rs 20,000 crore in September 2006 with Rs 12,000 crore of deposits and Rs 8,000 crore of advances.

The bank clocked in an increase of 64 per cent in advances and 41 per cent of deposits in 2005-06.

All the branches of the bank are on core banking solutions platform.

Bhandari said retail banking and SME lending were the strengths of the bank.