Nedungadi Bank merger : PNB seeks clarifications from RBI
By Kochi: | 09 Nov 2002
Kochi: Punjab National Bank (PNB) has sought clarifications from the Reserve Bank of India (RBI) on the issue of PNB’s merger with Nedungadi Bank (NBL), which is now under moratorium.
It is reliably learnt that PNB has sent a letter to the RBI seeking clarifications on certain points. PNB has not received a reply from the RBI yet.
The RBI moratorium order and subsequent statements from NBL fail to mention anything about PNB, with whom NBL is supposed to be merged. NBL is maintaining that the moratorium is only a prelude to the merger.
If PNB decides to take over NBL, it will prepare a report and send that to NBL. Then the director boards of both the banks will send their reports to the RBI.
PNB was established in 1895 in Lahore in Undivided India. Freedom fighter Lala Lajpat Rai was one of the founders of the bank. The bank was nationalised along with 13 others in 1969.