United Bank shares rally over 5% amid merger buzz with IDBI

Jul 28 2014, 18:13 IST
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SummaryUnited Bank of India's scrip surged 4.80 per cent to settle at Rs 51.35 on the BSE. During the day, it jumped 10.2 per cent to Rs 54.

Shares of United Bank of India today rose by more than 5 per cent amid merger reports with IDBI Bank.

United Bank of India's scrip surged 4.80 per cent to settle at Rs 51.35 on the BSE. During the day, it jumped 10.2 per cent to Rs 54.

Shares of UBI ended at Rs 51.45, up 5.21 per cent at the NSE.

IDBI Bank rose by 0.11 per cent to Rs 90.30 at the BSE.

As per media reports, IDBI has been asked to merge United Bank into itself.

Meanwhile in a clarification to the BSE, United Bank of India said that there is no negotiation taking place for merger of the bank.

"No negotiations are taking place for the merger of the bank with any other bank," United Bank of India said in a filing to the BSE.

State-owned IDBI Bank said it is not considering any proposal to merge Kolkata-based United Bank of India with itself.

"We confirm that so far no proposal for merger of United Bank of India with IDBI Bank has been discussed at IDBI Bank's board meeting and also no communication from Government of India in respect of the above has been received by the bank," IDBI Bank said in a statement.

Both the banks are public sector entities with government of India having 76.50 per cent and 89.47 per cent stake in IDBI Bank and United Bank of India respectively.

"As soon as any communication from Government of India is received by IDBI Bank or any such proposal is discussed at IDBI Bank's board meeting, necessary disclosure under clause 36 of the Listing Agreement shall be made by the bank," it said.

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