Mega Bank Merger: Three State-Run Banks Announce Share-Swap Ratios

Three state-run banks announced their share-swap ratios as part of the government’s plan to merge 10 such lenders into four.

Punjab National Bank, which will merge with Oriental Bank of Commerce and United Bank of India, informed the exchanges today that it will issue, by March 25:

• 1,150 shares with face value of Rs 2 each for every 1,000 Oriental Bank shares with face value of Rs 10 apiece. Swap ratio: 1.15: 1.
• 121 shares of face value of Rs 2 each for 1,000 shares of United Bank with face value of Rs 10 apiece. Swap ratio: 0.12: 1.

Union Bank of India, which will merge with Andhra Bank and Corporation Bank, said in an exchange filing that it will issue, by March 23:

• 325 shares of face value of Rs 10 each for every 1,000 shares of Andhra Bank with face value of Rs 10 apiece. Swap ratio: 0.325: 1.
• 330 shares with face value Rs 10 each for every 1,000 shares of Corporation Bank with face value of Rs 2 apiece. Swap ratio: 0.33: 1.

Canara Bank, which will amalgamate with its Karnataka peer Syndicate Bank, said that it will issue, by March 23, 158 equity shares with face value of Rs 10 apiece for every 1,000 Syndicate Bank equity shares having face value of Rs 10 apiece. Swap ratio: 0.58: 1.

Indian Bank informed the exchanges that Government of India has notified the amalgamation of Allahabad Bank with it, but it made no mention of when the share-swap ratio or when it would be announced.