RBI approves UWB-IDBI merger
The Reserve Bank of India on Saturday approved the amalgamation of The United Western Bank with the Industrial Development Bank of India Ltd, with effect from October 3.
A press release from RBI said that all branches of UWB would function as IDBI branches from October 3. Depositors and other customers of UWB will be able to operate their accounts as customers of IDBI.
IDBI will pay Rs 28 to shareholders of UWB, the RBI release said. Further, as per the terms of the scheme, if any surplus remains after meeting all the liabilities out of the realisation of assets of UWB, shareholders may receive pro-rata payment after the prescribed period, the release said.
On September 12, RBI had announced the amalgamation of UWB with IDBI, which has been approved by the IDBI board. RBI had given time till September 27 to both banks to send their responses to the draft amalgamation scheme.
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