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| KPMG to submit report in 10 days on CSB-Federal Bank merger |
| Press Trust of India / Chandigarh Oct 09, 2009, 20:24 IST |
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Private lender Federal Bank today said that it was expecting to get report from consultancy firm KPMG, entrusted with the job of carrying out due diligence of Catholic Syrian Bank (CSB) for the purpose of merger with it, in the next ten days.
"We are hoping that it (KPMG) will submit its report on financial due diligence of CSB involving the process of ascertaining swap ratio and pricing in the next ten days," Bank's Managing Director and CEO M Venugopalan told reporters here today.
"After receiving the due diligence report, the bank will further seek approval from its shareholders and RBI," he said.
The Federal Bank has proposed to merge with CSB and it has entrusted the job of conducting due diligence of CSB to KPMG.
The merger with CSB will further consolidate the position of Federal Bank as CSB has strong branch network of 353, mainly concentrated in the southern part with total business of Rs 10,000 crore.
In September 2006, Federal Bank took over Ganesh Bank of Kurundawad, enabling it to get 32 branches in Maharashtra and Karnataka.
Kerala-based Federal Bank, this year, plans to add 35 more branches, including three in Punjab, and is targeting total business of Rs 1,00,000 crore by 2011. "We have already opened 35 branches and we plan to open 35 more this year," he said.
He further said that the bank would also hire 800 more people to support its expansion plans. "We will be recruiting 800 people mainly from northern region for supporting expansion programme," he said.
The bank's gross business stood at Rs 60,000 crore, including 38,000 crore of deposits as on September 30, 2009.
It posted a net profit of Rs 500.49 crore during the same period.
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