UWB submits rehab package to RBI

Mumbai, Sep 7 (UNI) United Western Bank (UWB) today submitted its rehabilitation package to the Reserve Bank of India(RBI) which had placed it under moratorium on September two.

Backed by Maharashtra government and two development financial institutions (DFIs) - Housing Development Finance Corporation (HDFC) and Infrastructure Development Finance Corporation (IFDC)- the beleagured UWB submitted a Rs 350 crore package for its revival to the apex bank before expiry of the 1000 hrs deadline today, informed sources said.

With this, the UWB board has pulled the curtain on the takeover bid made by ICICI Bank, Federal Bank, Andhra Bank, Allahabad Bank, Canara Bank, and Standard and Chartered Bank besides Saraswat Co-operative Bank.

HDFC and IFDC have joined hands with the Maharashtra Government through its State Industrial Investment Corporation of Maharashtra (SICOM) - which holds a 10 per cent equity stake in UWB - to extend the Rs 350 crore financial-support for the revival of the bank.

Earlier, UWB notified the Bombay Stock Exchange today that its board yesterday unanimously decided to submit the reconstruction scheme for its revival with the assistance of the State government and two DFIs.

In the bail-out package, HDFC will invest up to Rs 70 crore by way of equity in UWB, while IDFC up to Rs 35 crore, while the balance investment is expected to be made by SICOM, all subject to terms and conditions laid down by Reserve Bank.

Both HDFC and IDFC informed that the investment will be made by it with SICOM and the Government of Maharashtra.

Earlier, SICOM officals met UWB members on Monday to discuss the reconstruction scheme for which regulatory approval would be sought from RBI, according to the state's finance minister Jayant Patil.

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