PSU banks announce share swap ratios for mergers
06 March 2020
Public sector banks that are set for a mega amalgamation by the end of the current fiscal, on Thursday announced the bank-wise share swap ratios that would result in the creation of four bigger banks out of 10 existing ones.
By the March-end deadline the ten public sector banks, which include both bigger and medium size banks, will merge into four bigger banks.
Punjab National Bank (PNB) in a regulatory filing announced the share exchange ratio in accordance with the scheme of amalgamation, as it is set to merge Oriental Bank of Commerce (OBC) and United Bank of India (UBI) into itself with effect from April 1.
PNB's board in its meeting on Thursday has approved for amalgamation of OBC and UBI, Punjab National Bank said in a BSE filing.
According to the swap ratio, 1,150 equity shares of PNB are to be exchanged for every 1,000 equity shares of Oriental Bank of Commerce, while 121 equity shares of PNB are to be swapped for every 1,000 equity shares of UBI.
A Grievance Redressal Committee headed by Vijay Kumar Vyas, retired judge of Rajasthan High Court, has been set up to address the grievances of shareholders. The committee is intended to address those shareholders who either individually or collectively hold at least 1 per cent of the equity capital of any of PNB, OBC or UBI; or 100 shareholders acting collectively, of any of PNB, OBC or UBI.
"The board of directors of the bank...have fixed Wednesday, 25 March 2020, as record date for issuing and allotting equity shares of PNB to the shareholders of OBC and UBI as per the share exchange ratio," PNB said in the filing.
Andhra Bank also on Thursday announced the swap ratio for its merger. Andhra Bank and Corporation Bank are to be amalgamated into Union Bank of India with effect from 1 April 2020.
"Further, the board of directors of the bank at its meeting held on March 5, 2020, has approved the equity share exchange ratio for amalgamation of Andhra Bank into Union Bank of India for 325 equity shares in Union Bank of India for every 1,000 equity shares in Andhra Bank," the bank said.
Union Bank in a separate exchange filing said its board at its meeting on Thursday has also approved the equity share exchange ratio. It includes 325 equity shares of Union Bank of India for every 1,000 shares in Andhra Bank and 330 shares in Union Bank for every 1,000 equity shares in Corporation Bank.
For Syndicate Bank's merger into Canara Bank, the share swap is 158 equity shares of Canara Bank for every 1,000 equity shares of Syndicate Bank.
The lenders in their respective filings to the exchange said their boards have approved the amalgamation of Syndicate Bank into Canara Bank.
For union Bank and Canara Bank, an expert committee (Grievance Redressal Committee) is to be headed by K N Keshavanarayana, former judge of the High Court of Karnataka, to address the grievances of minority shareholders.
The union cabinet on Wednesday okayed the amalgamation of 10 public sector banks to create four large state-owned lenders with effect from 1 April 2020.
According to the mega consolidation plan, OBC and UBI will merge into PNB; Syndicate Bank into Canara Bank; Andhra Bank and Corporation Bank into Union Bank of India; and Allahabad Bank into Indian Bank.
After the mergers, there will be seven large public sector banks (PSBs) and five smaller ones.