Financial Daily from THE HINDU group of publications
Friday, Jun 25, 2004
Financial Daily from THE HINDU group of publications Friday, Jun 25, 2004 |
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Money & Banking
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Mergers & Acquisitions Govt okays amalgamation of Gujarat local banks with BoB Our Bureau
Mumbai , June 24 THE Reserve Bank of India has said that the seven branches of the South Gujarat Local Area Bank Ltd, will function as branches of Bank of Baroda from June 25, as per the scheme of amalgamation, which will come into force from this date. The scheme, as sanctioned by the Government of India, fully protects the depositors' interests, said an RBI press release. As per the scheme of amalgamation, after first evaluating the assets and liabilities of the South Gujarat Local Area Bank Ltd, Bank of Baroda will takeover its assets and liabilities and pay the depositors and creditors to the extent of their balances. If any surplus remains after paying off the depositors and creditors, the shareholders of the bank will be entitled for payment only of pro rata value of shares. The scheme of amalgamation does not envisage allotment of shares of Bank of Baroda to the shareholders of the South Gujarat Local Area Bank Ltd, the release said. Earlier, on application from the Reserve Bank of India, the Central Government had made an Order of Moratorium on the South Gujarat Local Area Bank Ltd. The moratorium was made effective from the close of business on May 13, 2004 up to and inclusive of August 12, 2004. During the period of moratorium, the Reserve Bank of India prepared a draft scheme of amalgamation of the South Gujarat Local Area Bank Ltd with Bank of Baroda.
More Stories on : Mergers & Acquisitions | Public Sector Banks | Regional Rural Banks
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