Corporation Bank to submit EOI for United Western

Corporation Bank has announced that the Board of Directors of the Bank at its meeting held on September 07, 2006, has approved the proposal to submit Expression of Interest (EoI) of the Bank to Reserve Bank of India (RBI), to takeover The United Western Bank Ltd., which is placed under moratorium by the Government of India, subject to regulatory, statutory and other approvals.

Further, it has been stated that EoI is backed by the following strong reasoning:

1. The Bank is a well capitalised Bank, having a Capital Adequacy Ratio of 13.9% with a net worth of Rs 3375 crores as on March 31, 2006.

2. The Bank have a headroom for raising further capital funds to the extent of Rs 3600 crores through various capital instruments, without diluting Government stake. The Bank enjoys enormous leverage.

3. In term of branch network, it will give an opportunity to the Bank to have footprint in interior and rural Maharashtra.

4. The Bank consider it an opportunity to fulfill the corporate objective of double bottomline viz, serving the weaker sections of the society as well as improving returns to the Bank stakeholders.

Accordingly, the EoI has been submitted to RBI.

Source : Equity Bulls

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