Union Bank, PNB release swap ratio ahead of merger

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Published: March 6, 2020 7:54:24 AM

The other two anchor banks — Canara Bank and Indian Bank — are yet to disclose share swap ratio till the time of filing this copy.

union bank of india, punjab national bank, PNB, bank mergers india, andhra bank, corporation bank, oriental bank of commerce, united bank of india, bank merger ratioAndhra Bank and Corporation Bank will merge with Union Bank of India.

Union Bank of India and Punjab National Bank (PNB) disclosed merger ratios on Thursday to the exchanges after the Cabinet approved merger of 10 public sector banks into four from April 1, 2020. While Andhra Bank and Corporation Bank will merge with Union Bank of India, Oriental Bank of Commerce (OBC) and United Bank of India will merge with PNB.

Shareholders of Andhra Bank and Corporation Bank will get 325 and 330 shares, respectively, of Union Bank of India for every 1,000 shares of their respective banks, according to the exchange filing. Similarly, shareholders of OBC and United Bank of India will get 1,150 shares and 121 shares of PNB, for every 1,000 shares of the particular bank. The face value of PNB is Rs 2 per share whereas face value of OBC and United Bank of india is Rs 10/share each. Similarly, the face value of Union Bank of India and Andhra Bank is Rs 10 per share each while par value of Corporation Bank stands at Rs 2 per share.

The other two anchor banks — Canara Bank and Indian Bank — are yet to disclose share swap ratio till the time of filing this copy. Syndicate Bank is to be amalgamated with Canara Bank and Allahabad Bank will be amalgamated with Indian Bank.

Finance minister Nirmala Sitharaman on Wednesday said the proposed amalgamation of 10 state-run banks to create four larger lenders will come into effect from the intended date of April 1, 2020. Sitharaman earlier announced in the Budget that merged entities can continue to show losses after merger, which will provide tax benefit to the banks after merger.

Shares of Union Bank of India closed higher by 8.25% at Rs 39.35, Andhra Bank closed 3.76% up at Rs 13.52 and Corporation Bank closed at Rs 19.05, up 2.14%, on the BSE. Shares of Punjab National Bank on the BSE closed at Rs 44.9, up 1%, OBC closed 15.89% up at Rs 47.05 and United Bank of India closed 3.03% up at Rs 7.5.

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