why did centurion bank merge with bank of punjab, what benefits they got?

Answer 1

Private Banks are taking to the consolidation route in a big way. Bank of Punjab (BoP) and Centurion Bank (CB) have been merged and the combined bank will be called Centurion Bank of Punjab. The merger of the banks will have a presence of 240 branches and extension counters, 386 ATMs, about 2.2 million customers.

Gains from the merger -

Combined entity the Punjab-centurion bank would be the among the top 10 private sector banks in the country.

Merged entity would benefit from the fact that centurion bank had recently written of its bad loans against equity.

Branch network of the two banks will complement each other. The combined entity will have a nationwide reach.

Centurion Bank is strong in South India, Maharashtra and Goa whereas Bank of Punjab is strong in Punjab, Haryana and Delhi. While Centurion Bank has 82 per cent of its business coming from retail, Bank of Punjab is strong in the Small and Medium Enterprises (SMEs) segment and agricultural sector.

The book value of the bank would also go up to around Rs 300 crore. The higher book value should help the combine entity to mobilize funds at lower rate.

The combined bank will be full-service commercial bank with a strong presence in the Retail, SME and Agricultural segments.

Answer 2

No. In 2005, the financial institution of Punjab and Centurion financial institution merged to create the 5th best inner maximum sector financial institution in India . The merger combines Centurion's community interior the South and West of India and financial institution of Punjab's interior the North to furnish it an strategies-blowing national presence of 240 branches, 386 ATMS and 2200000 shoppers.

Answer 3

gabru.