(a) whether the Government proposes to merge Lord Krishna Bank and Centurion Bank
of Punjab;
(b) if so, the reasons therefor;
(c) whether the Government is aware that certain employees of Lord Krishna Bank have
committed suicide on the fear of job losses and harassment by the Bank management
as a result of the proposed merger move;
(d) if so, the details thereof; and
(e) the action taken by the Government to prevent further eventualities?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRIPAWAN KUMAR BANSAL)
(a) & (h) The Lord Krishna Bank Ltd. (LKBL), and Centurion Bank of Punjab Ltd. (CBOPL)
submitted to Reserve Bank of India (RB]) a proposal, approved by the respective Boards
of Directors and shareholders of these banks, for voluntary merger in £: terms of the
provisions of Section 44A of the Banking Regulation Act, 1949. RBI has kept its decision
in abeyance pending a judgement by the High Court of Kerala in a case filed by a shareholder
of LKBL challenging, inter-alia, the proceedings of the Annual General Meeting ofihe bank
which approved the draft scheme of amalgamation.
(c) to (e): Though, the United Forum of Lord Krishna Bank Employees Ltnions has reported
one such instance where an employee of LKBL has reportedly committed suicide, the cause of
the death has not been ascertained so far.