NEW DELHI: Eight state-run lenders heading for a merger at end of March 2020 revealed on Thursday the ratio of share swaps which the public sector banks will make to effect the move.
According to the big-bang PSB consolidation plan announced by the Centre last year and approved by the Cabinet this week, Punjab National Bank will be merged with the Oriental Bank of Commerce (OBC) and United Bank of India (UBI), the Union Bank of India with Andhra Bank and Corporation Bank, Syndicate Bank with Canara Bank and Allahabad Bank with Indian Bank.
All these mergers are to go into effect on April 1 this year. According to exchange filings, 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.
325 equity shares of Union Bank of India will be swapped for every 1,000 shares in Andhra Bank and 330 shares in Union Bank for every 1,000 equity shares in Corporation Bank. In the case of Syndicate Bank’s merger into Canara Bank, the share swap ratio is 158 equity shares of Canara Bank for every 1,000 equity shares of Syndicate Bank.
Seven large public sector banks and five smaller ones will be left after the consolidation exercise. Last year, the government had merged the Bank of Baroda with Dena Bank and Vijaya Bank. Prior to that move, the five associate banks of SBI and Bharatiya Mahila Bank had merged with the SBI.