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Non-Tech : ICICI Ltd - (Nyse: IC) -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (193)	2/20/2000 9:06:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 494

Four old private banks set to merge Tamal Bandyopadhyay & Paramvir Singh Mumbai, Feb 20: Three old-generation private banks-Sangli Bank, Ratnakar Bank, Ganesh Bank of Kurundwad-have been asked by the Reserve Bank of India (RBI) to consider merging themselves with United Western Bank. If the four Maharashtra-based banks agree to merge, it will signal the beginning of a consolidation phase among the older generation private banks. The RBI feels that a merger is the best possible way of survival for such banks, most of which have narrow capital bases. Of the four, only United Western Bank is a listed company with a public shareholding of 85 per cent. The bank's share price (Rs 10 par value) is quoting around Rs 35 with a 52-week high of Rs 44 and low at Rs 15 on the BSE. The merger idea was suggested at a recent meeting convened by RBI executive director GP Muniappan with the four banks' CEOs and directors. All the four banks have been making profits. They also conform to the RBI's prudential norms. Their low capital base, however, is a major area of concern for the RBI, as these banks will not be in a position to expand their asset portfolio without shoring up their net worth. "In an era of competition, very few old private-sector banks can survive unless they prop up their capital bases," said an RBI official.......... financialexpress.com