Oriental Bank of Commerce says no specific merger plan now

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Published: June 7, 2019 5:51:54 AM

Media reports, including FE's, had earlier suggested that OBC had floated the idea of combining with Indian Bank and Corporation Bank. 

Oriental Bank of Commerce, public sector lender, BSE filing,  Indian Bank, Corporation bank, OBC sharesThe bank hasn’t sought the finance ministry’s approval on any such merger, OBC said in a BSE filing.

Oriental Bank of Commerce (OBC) on Thursday said that its board hasn’t approved any “specific proposal” on merging any other public sector lender with itself. The bank hasn’t sought the finance ministry’s approval on any such merger, OBC said in a BSE filing.

Media reports, including FE’s, had earlier suggested that OBC had floated the idea of combining with Indian Bank and Corporation Bank. In a statement on Wednesday, Indian Bank said its board didn’t have any such proposal, showing its intent against any such potential merger with OBC should the government ask for its view. “There is no such proposal with the board of the bank,” it said.

“The bank has a well laid out business plan for the next three years, with a clear visibility on growth, earnings and asset quality that create significant value for all its stakeholders.” However, the bank didn’t rule out merger plan with suitable candidates in future.

The news of the potential merger had spooked Indian Bank investors, as its share price had tanked 5% on the BSE on Tuesday. However, OBC shares gained 2.85% and those of Corporation bank rose 1.21%.

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