UWB objects to merger with IDBI

The board of United Western Bank (UWB) has strongly objected to Reserve Bank of India's (RBI) proposal of handing over the troubled private sector bank to Industrial Development Bank of India (IDBI).

The Sicom-HDFC-Maharashtra government combine was willing to pump in Rs 350 crore to rejuvenate the bank. This would have valued each share of the bank at Rs 32.40 against IDBI's offer price of Rs 28 a share, the bank's board contended.

In a related development, the Bombay High Court will hear the petition challenging the amalgamation on Thursday. The petition was filed by three depositors of the bank last week.