EY To Work On Harmonising Capital Norms For Merger Of Punjab National Bank, United Bank Of India, Oriental Bank Of Commerce
Ernst & Young, which has been appointed as the advisor for the process of merger of Punjab National Bank, United Bank of India and Oriental Bank of Commerce, will work towards harmonisation of capital norms before amalgamation of the three state-run lenders, an official said.
The merger is expected to come into force from April 1, this year.
"PNB, the anchor bank, has appointed EY as advisor for harmonisation of capital norms, precisely net worth of the three banks as on March 31, 2020," United Bank of India's Managing Director and Chief Executive Officer Ashok Pradhan told PTI.
At present, the consulting firm is looking at the balance sheets of the three banks and their audited reports of the second quarter of the current financial year, he said.
EY will also study the third and fourth-quarter results of the three lenders, he said.
"Each bank will have different capital positions by end of this current fiscal and this needs to be harmonised for arriving at the swap ratio," he said.
The three banks had already set up 34 committees working on several aspects like standardisation of products and procedures.
These committees have already submitted their reports, he said.
The proposed merger will lead to the creation of the country's second-largest lender after State Bank of India with a total business volume of about Rs 18 lakh crore.
The officials had earlier said that a new logo will be created for the merged entity.