Mumbai: Centurion Bank of Punjab Ltd will acquire privately held Lord Krishna Bank in an all stock deal, its Chief Operating Officer Anil Jaggia said on Saturday.
"Our board will grant an initial approval for takeover of Lord Krishna Bank today," Anil Jaggia said.
"We have not put a value on the deal as yet and we will soon appoint consultants for the same," Jaggia said, adding that the transaction would be an all stock deal.
A leading business daily had valued the deal at about Rs 3 billion ($64.5 million). Lord Krishna Bank, based in the southern state of Kerala, has 112 branches and commands a strong presence in the region.
Jaggia had said earlier in May that Centurion Bank was planning to acquire other banks to fuel growth and expansion.
Centurion Bank has already obtained shareholders' approval to raise up to Rs 8 billion ($172 million) to fund proposed acquisitions.
Shares in Centurion Bank closed 1.5 per cent higher on Friday at Rs 23.40 rupees in a flat Mumbai market.