Centurion gets RBI nod for pref shares

Centurion Bank of Punjab today received the approval from the Reserve Bank of India for preferential issue of 12.9 crore shares to Citigroup Venture Capital International Growth Partnership Mauritius Ltd and India Value Fund.

The bank is issuing the shares to CVC and IVF at Rs 19.25 each, Centurion said in a release.

The bank will issue 7 crore equity shares to IVF, which is managed by India Value Fund Advisors Private Ltd (formerly GW Capital Private Ltd).

Another 5.90 crore equity shares will be issued to Citigroup Venture Capital International Prowth Partnership Mauritius Ltd.

"This issue will further strengthen the bank's capital adequacy and provide further impetus to its growth," the bank said.

Centurion Bank of Punjab holds leadership position in retail two-wheeler loans and commercial vehicle loans.

RBI has recently approved the merger between Centurion Bank and Bank of Punjab.

The merged entity, named Centurion Bank of Punjab, has a strong nationwide franchise of 241 branches and 389 ATMs in 122 cities. With strengths in the retail, SME and agriculture businesses the bank is well poised to capture the opportunities that exist in the Indian market.