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Home / Business / PNB board gears up for merger

PNB board gears up for merger

The merger will provide synergies in operations and the capital infusion will help it grow faster
“Accordingly, a meeting of the board of directors to consider the amalgamation will be convened by the bank shortly,” PNB said.
“Accordingly, a meeting of the board of directors to consider the amalgamation will be convened by the bank shortly,” PNB said.
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Our Special Correspondent   |   New Delhi   |   Published 31.08.19, 07:14 PM

Punjab National Bank on Saturday said its board will meet on September 5 to consider the merger of Oriental Bank of Commerce and United Bank of India with itself.

In a regulatory filing, the bank said it has received a communication from the finance ministry that the Alternative Mechanism panel for bank mergers has decided that Punjab National Bank, Oriental Bank of Commerce and United Bank of India may consider amalgamation.

“Accordingly, a meeting of the board of directors to consider the amalgamation will be convened by the bank shortly,” PNB said.

The merger will provide synergies in operations and the capital infusion will help it grow faster, Punjab National Bank managing director Sunil Mehta said.

“This is going to provide a lot of strength to the economy because these mergers will bring synergies in operations. The amount of capital given to the bank will provide an opportunity to grow faster. The decision will be discussed by the board,” he said.

Besides, the bank will also consider a capital infusion of up to Rs 16,500 crore by the government by way of preferential issue of equity share.

The date of an extraordinary general meeting to obtain shareholders’ approval for the infusion at a price determined by Sebi regulations will also be decided at the meeting.

Meanwhile, Corporation Bank, which is going to be merged with Union Bank of India along with Andhra Bank, said a board meeting will be held to consider the merger. In a stock exchange filing, it said: “A meeting of the board to consider the amalgamation will be convened in due course.”



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