Public Sector Banks has announced the Swap Ratio of the shares post merger – This is well known that the Government of India, Union Cabinet had approved the consolidation of ten public sector banks (PSBs) into four big banks and the merger will take effect from 1 April 2020.
Eight public sector banks announced the share-swap ratios for their proposed mergers.
Punjab National Bank (PNB) – According to the swap ratio, 1,150 equity shares of PNB are to be exchanged for every 1,000 equity shares of Oriental Bank of Commerce (OBC),
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United Bank of India (UBI) – 121 equity shares of PNB are to be swapped for every 1,000 equity shares of UBI.
The merged entity will be 2nd largest PSU bank in India. The three banks have set 25 March 2020 as the record date for share allotment.
Union Bank of India – For the amalgamation of Andhra Bank and Corporation Bank into Union Bank of India, share swap ratio stands at 325 shares of Union Bank for every 1,000 shares of Andhra Bank.
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330 shares of Union Bank of India for every 1,000 shares of Corporation Bank.
The merged entity will be 5th largest PSU bank in India.
Allahabad Bank – For every 1,000 equity shares of Allahabad Bank, investors will get 115 equity shares of Indian Bank. The merged entity will be 7th largest PSU bank in India.