Centurion, LKB merger extended by 3 months

The deadline for completing the merger of Mumbai-based Centurion Bank of Punjab (CBoP) and Lord Krishna Bank (LKB) has been extended by another three months.

This follows the Kerala high court's decision to defer the matter, challenging the merger, to July 31, the day the deadline for the merger expires.

The court verdict was earlier scheduled for July 26. Last week, the court asked LKB and petitioner Umesh Pai to submit their arguments and postponed the verdict.

Meanwhile, the board of directors of CBoP today decided to extend the scheme of amalgamation till October 31, while the board of Kochi-based LKB would meet on July 25 to decide on the matter.

According to LKB sources, a meeting of the Kochi-based bank's board is scheduled for July 25 and is likely to decide on extending the merger scheme in the light of CBoP's decision. Both the banks would thereafter convey their decisions to the Reserve Bank of India (RBI).

"If everything goes in the right direction, the RBI would approve the merger proposal by mid-August," said sources. Meanwhile, the RBI has approved the LKB's request to allow it to disclose the results for 2006-07 by September 30.