The Hindu Business Line : Unions oppose LKB merger with Centurion

The Lord Krishna Bank Employees' Union has opposed the proposed merger of the bank with Centurion Bank of Punjab. Foreign investments in Centurion Bank of Punjab is now as high as 73 per cent, with the London-based Saber Capital, Bank of Muscat and the Singapore-based Keppel Bank holding substantial stake, a statement from the union said.

Through increased supervision and better compliance, it was still possible to maintain the identity of Lord Krishna Bank, it said. It also appealed to the RBI and the Union Government to stop all moves to merge the two banks.

It was also pointed out that the identity of LKB, which has been providing banking services to the common man would be changed subsequent to the merger. Social banking, which has been its hallmark, would also be lost, the union said.

Meanwhile the United Forum of Bank Unions (UFBU) has opposed the proposed merger of Lord Krishna Bank with Centurion Bank of Punjab. With new generation banks concentrating on high value business and clients, the UFBU said in a statement that the merger would lead to curtailment of social banking services. UFBU warned that the proposed merger would lead to the closure of rural branches of LKB and introduction of contract labour system leading to retrenchment of permanent staff. It pointed out that the proposed merger, which is also a crisis-driven one, would not resolve the financial problems of these banks.

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