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Shares of six banks that will be merged with four other banks from April 1 would be suspended from trading on the bourses from March 20. The banks are Andhra Bank, Allahabad Bank, Corporation Bank, Oriental Bank of Commerce, Syndicate Bank and United Bank of India.
The National Stock Exchange (NSE), in a similar-worded releases, said that it will be suspending the trading of six banks from March 20 (that is, closing hours of trading on March 19) due to the scheme of amalgamation.
United Bank of India (UBI) and Oriental Bank of Commerce (OBC) would be merged with Punjab National Bank, while Andhra Bank and Corporation Bank would be amalgamated into Union Bank of India (UBI), Syndicate Bank with Canara Bank and Allahabad Bank with Indian Bank.
According to the scheme of amalgamation, 1,150 equity shares of PNB are to be exchanged for every 1,000 equity shares of OBC and 121 shares for 1,000 shares of United Bank; for amalgamation of Andhra Bank and Corporation Bank into UBI, 325 shares and 330 shares of UBI would be allotted for every 1,000 shares each in Andhra Bank and Corporation Bank respectively; and or Syndicate Bank’s merger into Canara Bank, the share swap is 158 shares of Canara Bank for 1,000 equity shares of Syndicate Bank.
For Allahabad Bank shareholders, the swap ratio has been pegged as 115 equity shares of Indian Bank for every 1,000 shares.
March 23 is the record date for the proposed schemes.
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