United Western Bank to be amalgamated with IDBI

New Delhi, Nov 2 (UNI) The Cabinet today gave its ex-post-facto approval for amalgamation of the private sector United Western Bank Ltd, (UWBI) with Industrial Development Bank of India (IDBI).

The UWBI, which was established in 1939 with its registered office at Satara in Maharashtra, will have its business, properties, assets and liabilities transferred to IDBI with the amalgamation move announced by Finance Minister P Chidambaram here after the cabinet meeting chaired by the Prime Minister.

All contracts deeds, bonds, agreements, powers of attorney etc having effect immediately before the date of amalgamation, shall be effective and may be acted upon as if IDBI bank Ltd had been party thereto or as if it had been issued in favour of UWBL.

''Any suit, appeal or legal proceedings pending shall not abate, be discontinued or be prejudicially affected but shall be subject to the other provisions of the scheme, be prosecuted and enforced by or against the transferee bank,'' Mr Chidambaram said.

As on 31st March, 2006, the bank had 230 branches, 12 extension counters and 75 ATMs and 3000 employees.

The financial position of UWBL had gone down during 2004-05 and 2005-06 with net loss of Rs 98.64 crore and Rs 104.48 crore respectively and had become very weak, Mr Chidambaram said.

RBI had come to the conclusion that it would not be possible for the UWBL to meet desposit liabilities.

IDBI shall make an upfront payment in cash of Rs 28 in respect of every fully paid-up share in UWBL, to the members of the UWBL.

All employees of UWBL shall continue in service and be deemed to have been appointed in IDBI Bank Ltd at the same remuneration and on the same terms and conditions of services as were applicable to them before the amalgamation.

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