Date:01/10/2006 URL: http://www.thehindu.com/2006/10/01/stories/2006100102241900.htm

Business

LKB, Centurion Bank of Punjab merger proposal put to vote

The voting results will be announced on October 3

KOCHI: The annual general meeting (AGM) of Lord Krishna Bank (LKB) here on Saturday considererd among other things the merger of the bank with Centurion Bank of Punjab (CBoP) amid protests by the United Forum of Bank Unions and some shareholders of the bank against the proposed merger.

The AGM put the merger resolution to vote. The results of the voting will be announced on October 3. The meeting, which considered an eight-point business agenda, including the merger, was held amidst police security, following a direction from the High Court.

A protest meeting was held outside the venue by the United Forum of Bank Unions.

Addressing the protest meeting, the Ernakulam MP, Sebastian Paul, demanded the Centre's intervention to solve the issue. He said the merger was detrimental to Kerala's banking interests. He said the merger would adversely affect the interests of the common man and urged the authorities concerned to look into the matter.

Chandran Pillai, MP, said the Government and the Reserve Bank of India (RBI) should take steps to merge LKB with a public sector bank. The proposed merger with Centurion Bank would only destroy the banking sector in the State since LKB had been giving utmost importance to social banking services, he said.

V. J. John, State Convenor of the Forum, said the merger was not based on sound economic logic as CBoP had 73 per cent aggregate foreign holdings and had posted huge losses in the last five years.

The Forum, comprising nine unions in the State, was backing the ongoing agitation of the unions of LKB. Ernakulam District Congress Committee President K. P. Dhanapalan, K. Babu MLA, and A. M. Yousuf, MLA, were among those present at the meeting.