Business Daily from THE HINDU group of publications
Tuesday, Sep 05, 2006
Business Daily from THE HINDU group of publications Tuesday, Sep 05, 2006 |
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Money & Banking
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Mergers & Acquisitions Canara Bank files EoI for acquiring United Western Bank Our Bureau
Others in the race Andhra Bank has sought its board approval for submitting its EoI to the RBI. However, ING-Vysya Bank has indicated that it was not currently interested in the bank. Among the banks that are currently in the race include ICICI Bank and the Federal Bank
Bangalore , Sept. 4 Public sector Canara Bank has made its pitch for acquiring the beleaguered United Western Bank Ltd. The bank filed its expression of interest with the Reserve Bank of India (RBI) on Monday for the acquisition. It has also sought the RBI's approval for carrying out a due diligence on UWB for possible amalgamation.
To increase presence
Canara Bank's interest in UWB stems from the latter's large branch network in the region. United Western Bank has a branch network of 230 offices, almost entirely in western India. Canara Bank, on the other hand, has a limited presence in the rural regions of Maharashtra. Canara Bank currently has a network of 260 branches in the western region, of which 198 are located in Maharashtra. Over 90 of its branches are in Mumbai alone. Bankers said that Canara Bank, in the past, had been attempting to expand its presence in the western region and UWB presented that opportunity. However, any merger would be contingent on the RBI's selection of suitors and on Canara Bank's own due diligence. The due diligence would throw up the actual cost of the acquisition, sources said, after the quality of UWB accounts are verified, bankers added.
Race hotting up
But the race has become intensely competitive with another public sector bank, Andhra Bank, also throwing in the towel for UWB acquisition. However, the private sector ING-Vysya Bank has indicated that it was not currently interested in the bank. High-level sources at the ING Vysya Bank said, "We have no interest in the bank at the moment." Among the banks that are currently in the race include ICICI Bank and the Federal Bank. More public and private sector banks are also expected to pitch for the acquisition, especially those whose presence in the region is very limited.
Related Stories: More Stories on : Mergers & Acquisitions | Public Sector Banks | Private Banks
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