Mumbai: The Reserve Bank of India (RBI) has approved the merger of Lord Krishna Bank Ltd (LKB) with Centurion Bank of Punjab (CBoP) and stated that the unification would be effective from tomorrow.

As indicated by the terms and conditions of the plan, the Bank would issue up to 13.22 crore equity shares of Re 1 each to the LKB shareowners.

These shares would be issued in the ratio of seven equity shares of Re 1 each of CBoP for every five equity shares of Rs 10 each held by them in Lord Krishna Bank Ltd on the record date to be fixed for this purpose.

All LKB divisions would work as CBoP branches with effect from tomorrow.

RBI’s resolution accompanies liberation of an appeal against the merger by the Kerala High Court.