Reserve Bank of India (RBI) today place in public domain a draft scheme of amalgamation of United Western Bank (UWB) with Industrial Development Bank of India (IDBI).
According to a release on the website of the central bank, the draft scheme has been sent to both the banks.
"The Reserve Bank has invited suggestions and objections on the draft scheme from the members of public, including the banks' shareholders, depositors and creditors. Both the banks have been given two weeks time up to Wednesday, September 27, 2006, to consider the draft scheme," the release added.
The Reserve Bank will take a view on the future set up of UWB soon thereafter.
It may be recalled that United Western Bank has been placed under an order of moratorium on September 2, 2006. The order is effective up to December 1, 2006 or an earlier date if alternate arrangements are in place.
Reserve Bank received expression of interest from 17 entities for taking over/restructuring UWB. The only restructuring proposal was from UWB, which envisaged help of the Government of Maharashtra and other investors, the release added.
Business Standard
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