LKB-Centurion merger gets nod in tense AGM

Lord Krishna Bank (LKB) approved its merger with Centurion Bank of Punjab (CBP). In a highly tense annual general meeting (AGM), which lasted two hours and 15 minutes, all the eight resolutions proposed in the agenda were passed, said a press release issued by the bank on late Saturday.

The statement said the merger resolution had been passed with requisite majority under section 44 A[1] of the Banking Regulation Act, 1949.

Meanwhile, a section of LKB shareholders are planning to approach the court immediately against the decision of the AGM.

"We are seeking the opinion of legal experts and will seek the intervention of the judiciary. The conduct and the proceedings of the AGM were not in accordance with the Banking Act. We will soon take a decision "� either to approach the company law board or the high court," said one of the shareholders.

The AGM had also approved the resolutions including the balance sheet for 2005-06, re-appointment of R C Bhargava, who incidentally chaired the AGM, and Mohan Puri as directors, induction of Mohinder Mohan Khanna to the bank board and the appointment of B Swaminthan as the bank's managing director.

The bank's press statement said all the resolutions were passed with requisite majority.

Director Swaminathan said the scrutiny of votes was completed by the evening and, hence, results were announced as per the relevant provisions of the Banking Regulation Act.