Kochi, Nov. 23 (PTI): Once bitten, twice shy. Private sector Lord Krishna Bank is not harbouring any merger plans at present after its merger talks with Federal Bank failed at an advanced stage and is instead focussing on its forthcoming initial pubic offering (IPO).

“We are not negotiating with anybody. We are rather concentrating on our March balance sheet,” Lord Krishna Bank’s managing director Mohan Puri, who holds approximately 60 per cent stake in the bank, told reporters here, scotching reports that LKB has been talking to some private banks on a possible merger plan.

Keeping in mind the RBI guidelines on the ownership of private banks, their governance and the urgent need for consolidation, and the approach of the Federal Bank for a possible merger, LKB had agreed to consider the matter, he said.

The proposal was in principle approved by Federal Bank and Lord Krishna Bank and it would have created a third largest private sector bank in the country. The due diligence was satisfactorily carried out after the in-principle approval. However, the merger could not take place because of lack of agreement on valuations concerning the shares of the two banks and other terms, Puri said.