Centurion Bank and Bank of Punjab have decided to merge. In a notice to the stock exchanges, Centurion Bank said its board has accorded in-principle consent to pursue its merger with Bank of Punjab. The merger, however, is subject to satisfactory due diligence, a fair share swap ratio and the receipt of all the requisite statutory, regulatory and corporate approvals, including approvals of RBI, stock exchanges, the respective boards and shareholders.Ambit Corporate Finance are the sole investment bankers to this transaction. KPMG India Private Limited and NM Raiji & Co, chartered accountants, have been jointly appointed as the independent valuers to determine the share swap ratio.Centurion said its board intends to meet again on June 29 to consider the terms of the merger and other related documents after receipt of the valuation reports. Centurion Bank saw changes in promotership after it went through financial troubles. Now Sabre Capital led by Rana Talwar controls the bank.Both banks want to exploit the strength of each other. While BoP has strong presence in North India, Centurion has widespread network in the Western region. Centurion closed at Rs 15.20 on Monday, while Bank of Punjab closed at Rs 33.40 on BSE.
