Eight public sector banks on Thursday announced the share-swap ratios for their proposed mergers, a day after the Union cabinet approved the consolidation effective from April 1, 2020.
In an announcement to the stock exchanges, Punjab National Bank said a consensus has been reached on the share-exchange ratio after a board meeting on Thursday.
According to the swap ratio, 1,150 equity shares of PNB are to be exchanged for every 1,000 equity shares of Oriental Bank of Commerce, while 121 equity shares of PNB are to be swapped for every 1,000 equity shares of the United Bank of India.
The three banks have set March 25, 2020 as the record date for issuing and allotting equity shares of Punjab National Bank to the shareholders of Oriental Bank of Commerce and the United Bank of India.
The Union Bank of India informed the bourses that its board has approved the share-exchange ratio for the amalgamating banks — Corporation Bank and Andhra Bank.
It includes 325 equity shares of Union Bank of India for every 1,000 shares in Andhra Bank and 330 shares in Union Bank for every 1,000 equity shares in Corporation Bank.
The three banks have set March 23, 2020, as the record date for issuing and allotting equity shares of the Union Bank of India to the shareholders of Andhra Bank and Corporation Bank.
Also, for Syndicate Bank’s merger with Canara Bank, the share swap is 158 equity shares of Canara Bank for every 1,000 equity shares of Syndicate Bank.
Meanwhile, Allahabad Bank on Thursday said its board of directors has approved the swap ratio for the its amalgamation into Indian Bank. For every 1,000 equity shares of Allahabad Bank, investors will get 115 equity shares of Indian Bank.
After these mergers, there will be eight large public sector banks and four smaller ones. Earlier, Dena Bank and Vijaya Bank were merged with Bank of Baroda.
Prior to this, the government had merged five associate banks of SBI and Bharatiya Mahila Bank with the State Bank of India