Govt clears ailing United Western Bank's merger with IDBI

Mumbai, Sep 30 (UNI) The Central Government today sanctioned the Scheme for the amalgamation of United Western Bank (UWB) with Industrial Development Bank of India (IDBI) effective from October 3.

Accordingly, all the branches of (UWB) will function as branches of IDBI with effect from the aforementioned date, said a RBI release here today.

Customers, including depositors of UWB, will be able to operate their accounts as customers of IDBI from that date.

IDBI is making necessary arrangements to ensure that service, as usual, is provided to the customers of UWB, the release added.

In accordance with the Scheme of Amalgamation, IDBI shall make an upfront payment in cash of Rs 28 in respect of every fully paid-up share to the members of UWB, who were, as on the prescribed date, registered as the holders of shares of the bank, in partial satisfaction of their claim in respect of their interest in such shares.

Further, in terms of the scheme, if any surplus remains after meeting all the liabilities out of the realisation of assets of UWB, the shareholders may receive pro-rata payment after the prescribed period, the release added.

UNI SN SSS AW1756