Indian Bank board approves share swap for Allahabad Bank merger

Indian Bank will issue 115 shares for every 1,000 shares of Allahabad Bank for merging the latter with itself, according to an exchange filing.

As per the fair equity share exchange ratio approved by the board of directors of the bank, 115 equity share of Indian Bank are to be exchanged for every 1,000 shares of Allahabad Bank, Indian Bank said in a regulatory filing.

In a separate filing, Union Bank said it has set March 23, 2020, as the record date for issuing and allotting equity shares of Union Bank of India to the shareholders of Andhra Bank and Corporation Bank.

In the biggest consolidation exercise in the banking space, the government in August 2019 had announced four mega mergers of public sector banks, bringing down their total number to 12 from 27 in 2017, a move aimed at making state-owned lenders global sized banks.

As per this plan, United Bank of India and Oriental Bank of Commerce will be merged with Punjab National Bank; Syndicate Bank will be merged with Canara Bank; Allahabad Bank will be amalgamated with Indian Bank; and Andhra Bank and Corporation Bank will be consolidated with Union Bank of India.

Last year, Dena Bank and Vijaya Bank were merged with Bank of Baroda. Prior to this, the government had merged five associate banks of SBI and Bharatiya Mahila Bank with the State Bank of India.